1. Century Design purchased some fixed assets four years ago at a cost of $360,000. It no longer needs these assets, so it is going to sell them today at a price of $146,000. The assets are classified as 5-year property for MACRS. The MACRS table values .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively. What is the current book value of these assets?
$62,208
$68,430
$75,660
$81,276
$86,754
2. Concord Manufacturing is evaluating a project that will increase sales by $420,000 and costs by $195,000. The project will initially cost $1,040,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the annual operating cash flow for this project?
$164,900
$176,250
$183,860
$192,310
$198,480