4/2/13 Assignment Print View ezto.mhecloud.mcgraw-hill.com/hm.tpx 1/2 1. award: 10.00 points 2. award: 10.00 points 3. award: 10.00 points P8-8 Calculating Salvage Value An asset used in a 4year project falls in the 5year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $15,810,000 and will be sold for $3,570,000 at the end of the project. If the tax rate is 35 percent, the aftertax salvage value of the asset is $ . (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount. (e.g., 32)) rev: 05_30_2011 Worksheet P88 Calculating Salvage Value Difficulty: Basic P8-12 Comparing Mutually Exclusive Projects CBOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $442,000, has a 4year life, and requires $137,000 in pretax annual operating costs. System B costs $532,000, has a 6year life, and requires $56,000 in pretax annual operating costs. Both systems are to be depreciated straightline to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. If the tax rate is 32 percent and the discount rate is 22 percent, the NPV for project A is $ and the NPV for project B is $ . Therefore, the firm should choose project (Click to select) . (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) Worksheet P812 Comparing Mutually Exclusive Projects Difficulty: Intermediate P8-25 Calculating Project NPV You have been hired as a consultant for Pristine UrbanTech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago for $1,030,000 in anticipation of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for…