Question 16 (1 point) Machine X has an upfront cost of $364,500 and annual operating costs of $11,025 over its 4-year life. Machine Y costs $345,000 upfront and has annual operating costs of $5,580 over its 3-year life. Whichever machine is purchased will continue to be replaced at the end of its useful life. If the required return is 14.25% for both machine, what is the absolute value of the dollar difference between the EACs of the two machines? $16,237 $16,688 $17,139 $17,590 $18,041 Question 19 (1 point) Your company is considering a project which will require the purchase of $655,000 in new equipment. The company expects to sell the equipment at the end of the project for 25% of its original cost, but some assets will remain in the CCA class. Annual sales from this project are estimated at $232,000. Initial net working capital equal to 29.00% of sales will be required. All of the net working capital will be recovered at the end of the project. The firm requires a 8.50% return on similar investments. The tax rate is 35%, and the project life is 5 years. There are no other operating expenses. If the equipment is a 27.00% CCA class, what is the present value of the CCA tax shield? $138,540 $142,004 $145,467 $148,931 $152,394