a. The cost of the new machine is $210,000. ABC Corp. is considering the purchase of another machine as an alternative to Project A. (YOU MUST COPY & PASTE THE TABLE INTO YOUR ANSWERING BOX) Calculate the NOCFs for Project B. b. Delivery and Installation will cost $40,000. e. The company spent $60,000 building a new parking lot last year. d. The project will require an immediate increase in working capital of $10,000; the working capital will be fully recaptured at the end of the life of the project. The project will increase annual revenues by $95,000 and annual operating costs by $35,000. 1. The project has an estimated life of five years. 8. The machine will be 100% depreciated via simple straight-line depreciation to a book value of $0.00 i. The company is using SIMPLE straight line depreciation ul. However, similar machines outlive the IRS depreciation period and on average have a salvage value of $20,000 after 5 years of use. The company assumes the same for their machine. h. The Firm expects to sell their current old machine as scrap parts for $5,000 which has been fully depreciated to a book value of $0.00 Assume a 14% WACC and 35% marginal tax rate. e 1. Calculate the Depreciation Schedule. (4 points) Installed Machine Depreciable Value Straight Line Per Year Depreciation % Annual Depreciation Allowed Remaining Book Value of Machine Year 1 2 . 4 S 14 Points) 2. Calculate the Terminal Cash Flow. (4 Points) Salvage Sale Price of New Machine Tax Effect from Below After Tax Net on New Machine Working Capital Recapture Terminal Cash Flow