1. Today, Litchfield Design purchased a piece of equipment for 107,500 dollars that will be depreciated to 14,000 dollars over 17 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is sold in 15 years for 56,000 dollars and the tax rate is 10 percent?

2. Today, Gomi Waste Disposal purchased a piece of equipment for 167,000 dollars that will be depreciated to 87,000 dollars over 5 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is sold in 7 years for 109,000 dollars and the tax rate is 25 percent?