1. High Five Corporation purchased a machine for $75,000, including installation costs. Annual straight line depreciation is $7,500. If High Five has a tax rate of 35%, what is the cash flow from disposal of the machine is sold at the end of six years for $15000?
2. Explain how the statement by the FOMC in 2012 that an annual inflation rate of 2 percent over the long run is consistent with its mandate can help the Federal Reserve fulfill that mandate.