1. XYZ is interested in buying a new machine which is expected to cost $85,000. In addition, the company will pay $15,000 in shipping and $5,000 in installation costs. The MACRS category is five years and the company expects to sell the machine at 25% above book value at the end of year 5. Its investment in working capital will be recovered once the machine is sold. Before buying this machine, it paid a consultant $5,000 fee for her advice. Once the machine is installed, the company will experience an increase in current assets of $7,000 and a decrease of $2,000 in current liabilities. The new machine will increase revenue by $15,000 while decreasing operating costs by $20,000 per year. Its tax rate is 35%. Prepare the following statements:

Do not use excel formulas, use PVIF

a) Initial investment

b) Operating cash flows and

c) End of project non-operating cash flows