A company is purchasing a new machine for $200,000.

Shipping and installation will be $40,000.

Changes in net operating working capital inventories, will increase by $20,000.

The machine will produce 100,000 units/year at $2 per unit. (revenue)

Variable costs are 60% of sales.

The machine has a depreciable class life of 5 years.

The project will last 4 years.

he machine will have a salvage value of $25,000 at the end of year four.

The companys tax rate is 40% and its WACC is 10%.

(3pts)

What is the amount of the depreciable asset?	Select One $56,245 $64,000 $67,200 $260,000 $120,200 $240,000
Calculate the Initial Outlay	Select One $56,245 $64,000 $67,200 $260,000 $120,200 $240,000
Calculate the cash flow for year One	Select One $56,245 $64,000 $67,200 $260,000 $120,200 $240,000