1. A company is evaluating a project that will increase annual sales by $100,000 and annual costs by $80,000. The annual depreciation is $10,000. The applicable tax rate is 30%. What is the operating cash flow for this project? A$13,000 B$15,000 C$17,000
2. A company is evaluating a 5-year project that will increase annual sales by $10,000 and annual cost by 80,000. The project needs a MACRS 3 years equipment at a cost of $60,000. The applicable tax rate is 30%. What are the depreciation tax shield for the project in year 3 and year 5 respectively? A$5,999 ; $2,666 B$2,666 ; $1,334 C$2,666 ; $0