7. Problem 12.16 (Replacement Chain) eBook The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for the next 8 years. Machine A has an after-tax cost of $8.4 million but will provide after-tax inflows of $4.4 million per year for 4 years. If Machine A were replaced, its after-tax cost would be $9.6 million due to inflation and its after-tax cash inflows would increase to $4.9 million due to production efficiencies. Machine B has an after-tax cost of $13.6 million and will provide after-tax inflows of $4.2 million per year for 8 years. If the WACC is 14%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. Machine -Select- V is the better project and will increase the company's value by $ millions, rather than the $ millions created by Machine -Select- V Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $15 million Operating costs 13.5 million Interest expense 1 million The company has a 25% tax rate, and its WACC is 11%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar. $ b. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar. The firm's OCF would now be $