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D. Ir depends on the size of the initial outla 42. Ce the follow to...

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Finance

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D. Ir depends on the size of the initial outla 42. Ce the follow to information the metuestions Afin de inview piece of equipment. The equipment would cost $500,000 am would have shipping and instal cost of $15.00 puhas man het wit Ne of 5 years and would be depreciated via a Syear MACRS schedule 20.07.2014. 1927. 11.3. 11.3. Metion of the project was pure crease in working portal esc00. In the new equipment is purchase an old piece of pipent which is will able for more years) could be wol for $30,000. The machine had been depreciated on a straight line has and currently has a book value ofere The machine would rate annual incremental remew of $250,000 and annual incremental expenses of 550,000 tt is estimated that the machine can be soldes scrap the end of 5 met e for $80,000. The required return de projects of this nature is 145 and the firm's marginal tax rate 40% 43. What is the after-tax impact of the sale of the old machine at time 0? O A. $12,000 B. $18,000 o C. $30,000 O D. $48,000 44. What is the cash flow from the project for year 1? O A. $45,000 O B. $75,000 O C. $125,000 O D. $170,000 45. What is the tax liability created by the sale of the new machine at time 5? o A. $17,500 B. $20,400 OC. $32,000 O D. $43,700

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