Question: please answer those questions Select Editing Styles 19. A company is considering investing in one of two machines: one new or one it already has

please answer those questions please answer those questions Select Editing Styles 19. A company is considering

Select Editing Styles 19. A company is considering investing in one of two machines: one new or one it already has been using If the old machine, acquired three years ago, has four years of remaining life, what is the present value of the tax savings generated by straight-line depreciation over its remaining life. The original cost of the machine was $448,000. The cost of capital is 12% and the tax rate=40%. Round to nearest whole dollar a $25,600 c. $112,000 b. $77.747 d. $136,058 20. A special machine can save $11,200 per year in cash operating expenses for the next 10 years. The cost is $44,000. No salvage value is expected. Assume the tax rate averages 2/7 of taxable income, straight-line depreciation is used, and the cost of capital = 10%. The CFAT is (round to the nearest dollar): a $11,200 c. $8,480 b. $9.258 d. $6,800 21. Refer to the preceding question. The internal rate of return, using linear interpolation and rounding to two decimal places, 13 a. 25.45 12.34% b. 21.04% d. 14.14% C Droo

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