1)Summer Tyme, Inc., is considering a new 6-year expansion project that requires

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1)Summer Tyme, Inc., is considering a new 6-year expansion project that requires an initial fixed asset investment of $3.564 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $3,168,000 in annual sales, with costs of $1,267,200. If the tax rate is 31 percent, the OCF for this project is $. (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount. (e.g., 32))

2 ) Dog Up! Franks is looking at a new sausage system with an installed cost of $280,800. This cost will be depreciated straight-line to zero over the project's 6-year life, at the end of which the sausage system can be scrapped for $43,200. The sausage system will save the firm $86,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $20,160. If the tax rate is 35 percent and the discount rate is 11 percent, the NPV of this project is $. (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

3)An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $12,090,000 and will be sold for $2,730,000 at the end of the project. If the tax rate is 31 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))

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