1. A company buys a color printer that will cost $19,000 to buy, and last 5 years. It is assumed that it will require servicing costing $900 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 13 %?
A. −$5,672
B. −$6,302
C. −$5,042
D. −$4,411
2. ABC Company purchased $56,449of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $9,553. What is the After-tax Salvage Value if the tax rate is 28 percent? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49,8.93, 8.92, 8.93, and 4.46 percent.