9. (Cash- flow analysis) The “Cold and Sweet” (C&S) company manufactures ice cream bars. The company is considering the purchase of a new machine that will top the bar with high- quality chocolate. The cost of the machine is

$900,000. The machine will be depreciated over 10 years to zero salvage value. However, the company intends to use the machine for only 5 years.

Management thinks that the sale price of the machine at the end of 5 years will be $100,000.