QUESTION 3 A company is considering a 3-year project with an initial cost of $320,000. The project will not directly produce any sales but will reduce operating costs by $110,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are 1429, 2449, 1749, 1249, 0893, .0892, 0893, and 0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $152,000 before tax. The tax rate is 25 percent and the required return is 10 percent. An extra $50,000 of inventory will be required for the life of the project (but will be fully recovered when the project ends). What is the total cash flow for the final year (i.e. Year 3)? $285,314 $295,476 $305,172 $315,938 $325,404 QUESTION 4 A company purchased some fixed assets four years ago at a cost of $310,000. It no longer needs these assets, so it is going to sell them today at a price of $50,000. The assets are classified as 5-year property for MACRS. The MACRS table values 2000, 3200, 1920, 1152, 1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets? O $53,568 O $49,472 O $45,306 O $41,840 $57,564