Table $11\mathrm{.}2$

Computer Disk Duplicators, Inc. has been considering several capital investment proposals for

the year beginning in $2022.$ For each investment proposal, the relevant cash flows and other

relevant financial data are summarized in the table below. New assets will be depreciated under

the MACRS system rather than being fully expensed right away. In the case of a

replacement decision, the total installed cost of the equipment will be partially offset by the sale of

existing equipment. The firm is subject to a $40$ percent tax rate on ordinary income and on

long $-$ term capital gains. The firm's cost of capital is $15$ percent.

"Not applicable

For Proposal $2,$ the book value of the existing asset at the end of $2021$ is

$($See

Table $11\mathrm{.}2)$

A$.$ $$13,600$

B$.$ $$66,400$

C$.$ $$34,400$

D$.$ $$80,000$