11-9 Campbell Company is evaluating the proposed acquisition of a new milling machine. The New Project machine's base price is $120,000, and it would cost another $9,500 to modify it for special Analysis use. The machine falls into Class 8 with a 20% CCA rate, and it would be sold after 4 years for $60,000. The machine would require an increase in net working capital (inventory) of $7,500. The milling machine would have no effect on revenues, but it is expected to save the firm $31,000 per year in before-tax operating costs, mainly labour. Campbell's marginal tax rate is 30%. What is the total initial investment for capital budgeting purposes? (That is, what is the Time 0 net cash flow?) b. What is the PV of the project cash flows using an 11% cost of capital? What is the PV of the CCA tax shield? d. What is the PV of the additional Year 4 cash flow? If the project's cost of capital is 11%, should the machine be purchased? a. c. e