Three years ago, Knox Glass purchased a machine for a 3-year project. The machine is being depreciated straight-line

Three years ago, Knox Glass purchased a machine for a 3-year project. The machine is being depreciated straight-line to zero over a 5-year period. Today, the project ended and the machine was sold. Which one of the following correctly defines the aftertax salvage value of that machine? (T represents the relevant tax rate)    A.  Sale price + (Sales price - Book value) × T B.  Sale price + (Sales price - Book value) × (1 - T) C.  Sale price + (Book value - Sale price) × T D.  Sale price + (Book value - Sale price) × (1 - T) E.  Sale price × (1 - T) Refer to section 10.4

33.	Which one of the following is a correct method for computing the operating cash flow of a project assuming that the interest expense is equal to zero?    A.  EBIT + D B.  EBIT - T C.  NI + D D.  (Sales - Costs) × (1 - D) × (1- T) E.  (Sales - Costs) × (1 - T) Refer to section 10.5

34.	The operating cash flow for a project should exclude which one of the following?    A.  taxes B.  variable costs C.  fixed costs D.  interest expense E.  depreciation tax shield Refer to section 10.5

35.

The bottom-up approach to computing the operating cash flow applies only when:    A.  both the depreciation expense and the interest expense are equal to zero. B.  the interest expense is equal to zero. C.  the project is a cost-cutting project. D.  no fixed assets are required for a project. E.  both taxes and the interest expense are equal to zero. Refer to section 10.5