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Southern Co. purchases an asset for $50,000. This asset qualifies as a five-year recovery asset...

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Southern Co. purchases an asset for $50,000. This asset qualifies as a five-year recovery asset under MACRS, with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%. Southern has a tax rate of 20%. If the asset is sold at the end of four years for $5,000, what is the after-tax cash flow from disposal? OA) $5,728.00 OB) $6,274.00 OC) $3,535.36 OD) $2,592.00 Lauer's have decided to expand their retail shop by building on a vacant lot they own. The company will build a new building at an estimated cost of $4 million. The firm will spend another $500 thousand on the parking and access roads. The land was purchased ten years ago at a cost of $1 million. Today, that land is worth 1.5 million. What is the total cost of this expansion project? $6.0 million $7.0 million $4.5 million $5.5 million

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