1.A project has an initial requirement of $219,312 for new equipment and $14,180 for net working capital. The installation costs are expected to be $13,506. The fixed assets will be depreciated to a zero book value over the 4-year life of the project and have an estimated salvage value of $94,642. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $51,197 and the cost of capital is 5% What is the project's NPV if the tax rate is 36%?
2.A project requires $19,259 of equipment that is classified as 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?
3.A project requires $204,164 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percen