5) Your Company is considering a new project that willrequire $960,000 of new equipment at the start of the project. Theequipment will have a depreciable life of 8 years and will bedepreciated to a book value of $372,000 using straight-linedepreciation. The cost of capital is 11%, and the firm's tax rateis 34%. Estimate the present value of the tax benefits fromdepreciation (closest to).
A) $48,510
B) $24,990
C) $128,602
D) $73,500
6) Your firm needs a machine which costs $200,000, andrequires $35,000 in maintenance for each year of its 5 year life.After 3 years, this machine will be replaced. The machine fallsinto the MACRS 5-year class life category. Assume a tax rate of 30%and a discount rate of 14%. If this machine can be sold for $20,000at the end of year 5, what is the after tax salvagevalue?
A) $14,000.00
B) $17,456.00
C) $8,064
D) $8,480.00
14) Scribble, Inc. has sales of $91,000 and cost ofgoods sold of $75,000. The firm had a beginning inventory of$21,000 and an ending inventory of $23,000. What is the length ofthe days' sales in inventory? (Round your answer to 2 decimalplaces.)
A) 84.23 days
B) 102.20 days
C) 111.93 days
D) 92.25 days
