Question: please answer both Questions QUESTION 21 You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in


please answer both Questions
QUESTION 21 You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8,700, an increase in accounts payables of $2,100. and an increase in property, plant, and equipment of $44,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is: O a. $6.600 o b. $7.920 O c. $10.800 O d. $50.600 20 QUESTION 22 A firm is considering investing in a new machine that will cost $575,000 and will be depreciated straight-line over five years. If the firm's marginal tax rate is 35%, what is the annual depreciation tax shield of purchasing the machine? O a. $201.250 o b. $36.225 O c. $40.250 O d. $115.000
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