The following information relates to Franklin Freightways for its first year of operations (data in millions of dollars): Pretax accounting income: $ 250 Pretax accounting income included: Overweight fines (not deductible for tax purposes) 6 Depreciation expense 67 Depreciation in the tax return using MACRS: 105 The applicable tax rate is 25%. There are no other temporary or permanent differences. Franklin's taxable income ($ in millions) is: Multiple Choice $38. $212. $105. $218.

Lambert manufacturing has $100,000 to invest in either project a or project b. the following data are available on these projects (ignore income taxes.): project a project b cost of equipment needed now $100,000 $60,000 working capital investment needed now - $40,000 annual cash operating inflows $40,000 $35,000 salvage value of equipment in 6 years $10,000 - both projects will have a useful life of 6 years and the total cost approach to net present value analysis. at the end of 6 years, the working capital investment will be released for use elsewhere. lambert's required rate of return is 14%. the net present value of project b is: