An asset used in a four-year project falls in the five-year

MACRS class (MACRS Table) for tax purposes. The asset has an

acquisition cost of $7,500,000 and will be sold for $1,790,000 at

the end of the project.

If the tax rate is 34 percent, what is the aftertax salvage

value of the asset? (Do not round

intermediate calculations. Round your answer to 2

decimal places (e.g., 32.16).)

value

$

Cochrane, Inc., is considering a new three-year expansion

project that requires an initial fixed asset investment of

$2,520,000. The fixed asset will be depreciated straight-line to

zero over its three-year tax life, after which time it will be

worthless. The project is estimated to generate $2,290,000 in

annual sales, with costs of $1,280,000. Assume the tax rate is 40

percent and the required return on the project is 7 percent.

What is the projectAc??cs NPV? (Do not

round intermediate calculations. Negative amount should be

indicated by a minus sign. Enter your answer in dollars, not

millions of dollars (e.g., 1,234,567). Round your answer to 2

decimal places (e.g., 32.16).)