A manufacturing company is considering acquiring a new injection$-$molding machine at a cost of

$$120,000.$ Because of the rapid change in product mix, the need for this particular machine is expected to

last only eight years, after which time the machine is expected to have a salvage value of $$10,000.$ The

annual operating cost is estimated to be $$11,000.$ The addition of the machine to the current production

facility is expected to generate annual revenue of $$48,000.$ The firm has only $$70,000$ available from its

equity funds, so it must borrow the additional $$50,000$ required at an interest rate of $10\%$ per year with

repayment of principal and interest in eight equally annual amounts. The applicable marginal income tax

rate for the firm is $40\%.$ Use a cost of capital of $4\mathrm{.}2\%$ for this project. Use MACRS for deprecation.

Determine the NPW and AEW for this project. Use the template provided as a starting point for your

income$/$cash flow statement.