1. Should the total cash flows that are expected to be produced by a new international division be included in the analysis that is performed to make a decision as to whether a multinational firm should invest in the division? Explain.
2. Power Built Construction is considering whether to replace an existing bulldozer with a new model. If the new bulldozer is purchased, the existing bulldozer will be sold to another company for $85,000. The existing bulldozer has a book value equal to $100,000. U Power Built's marginal tax rate is 35 percent, what will be the net after-tax cash flow that is generated from the disposal of the existing bulldozer?

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