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