Question $4[4$ point$]$: Maxwell Feed & Seed plans to sell one of its machines to another

company for $$102,000.$ The book value of the machine is $$90,000.$ Maxwell's marginal tax rate is $40$ percent.

a$)$ Compute the gain $($loss$)$ on the sale of the machine.

b$)$ Compute the net cash flow that will be generated from the sale of the machine.

Question $5[4$ point$]$: Tech Engineering Company is considering the purchase of a new machine

to replace an existing one. The current market value of the old machine is $$14,000$ and its book

value is $$5,000.$ The new machine's cost is $$30,000$ and the increase in net working capital is

$$3,400.$ If the firm's marginal tax rate is $40\%,$ what is the initial investment outlay for the new

machine?