Question: please answer both questions completely. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00% 32.00% 19.20% 1152 1152%

please answer both questions completely. Year 0 Year 1 Year 2

please answer both questions completely.

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00% 32.00% 19.20% 1152 1152% 5.76% A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%? $11,520 $17,208 0 $9480 $3792 QUESTION 2 A decrease in the sales of a current project because of the launching of a new project is a sunk cost. O cannibalization an overhead expense O irrelevant to the investment decision

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