Use the MACRS 5-year property table below to answer this question: 4 6 Year 1 2 3 5 Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $40,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $22,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34%? $19,200.00 $22,000.00 $21,048.00 $16,870.08 $18.436.80 Question 35 3 pts The Book Store is considering a new four-year expansion project that requires an initial fixed asset investment of $2.1 million. The fixed asset will be depreciated straight-line to zero over its four-year life, after which time it will be worthless. The project is estimated to generate $.98 million in annual sales, with costs of $.79 million. If the tax rate is 34 percent, what is the OCF for this project? S303.900 $325.400 $650.400 $284.280 $291.640 Question 36 3 pts Over the past four years, a stock produced returns of 6 percent, 8 percent, 19 percent, and 2 percent, respectively. Based on these four years, what range of returns would you expect to see 95 percent of the time? -02 percent to 24.39 percent -58 percent to 31.33 percent O -5.80 percent to 23.30 percent -5.80 percent to 27.02 percent -23 percent to 24.39 percent Question 37 3 pts Cromwell's Interiors is considering a project that is equally as risky as the firm's current operations. The firm has a cost of equity of 15.4 percent and a pretax cost of debt of 8.9 percent. The debt-equity ratio is 46 and the tax rate is 34 percent. What is the cost of capital for this project? 12.40 percent 12.38 percent 1162 percent 1102 percent 11.97 percent