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9 pts Your firm is considering investing in a new piece of machinery. This equipment costs $3,100.000 and will depreciated over five zeros to value

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9 pts Your firm is considering investing in a new piece of machinery. This equipment costs $3,100.000 and will depreciated over five zeros to value of zero. The operating life of the machine is also five years. At the end of the life you estimate that you will be able to sell the equipment for $375,000 You have discussed the project with marketing and accounting staff, and they estimate that sales will be $2,100,000 annually for the five years. The variables costs are 30% of sales, and the fixed costs should be about $570,000 per year. You will also need $1,250,000 in net working capital to support the operation, The firm's marginal tax rate is 21%, and your firm requires an 8% return on such Investments. What is the annual operating cash flow that this project will generate over its five-year life? O $904,000 $828.000 O $221.200 $1338.900 O $841,200 9 pts

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