The following data is associated with a proposed replacement project: A machine that originally cost $25,000 and has been depreciated straight line has two years of its expected 5-year life remaining. Its current market value is $15,000. The corporate tax rate is 34%. The cash flow from disposing of the old machine is:

Select one:

A. $10,000

B. $15,000

C. $13,300

D. $8,250

The future cash flows of a stand-alone capital project follow:

Year 0 1 2 3

Cash flow ($5,000) $2,500 $2,500 $2,500

If the company's cost of capital is 14%, what is the approximate NPV of the project?

Select one:

A. $5,804

B. $1,217

C. $6,217

D. $804