2- Janes, Inc., is considering the purchase of a machine that would cost $270,000 and would last for 3 years, at the end of which, the machine would have a salvage value of $35,000. For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 3 years. Annual cash revenues and costs from the machine are provided below: Sales revenues Cost of goods sold Operating costs $220,000 $40,000 $35,000 45 Additional working capital of $9,000 would be needed immediately, 80% of it would be recovered at the end of 3 years. Assume that the tax rate is 15% and that the company requires a minimum return of 12% on all investment projects. Required: Prepare a cash flow schedule to calculate the required investment and the annual cash flows. Answer (In 1000) 3