Acme Assemblers Inc. currently earns annual revenues of $2,250,000 and incurs total operating expenses (excluding depreciation and interest expense) of 50% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new shrink-wrapping machine. The wrapping machine is expected to cost $20,000, plus $3,500 in freight and setup expenses, and will be depreciated using straight-line depreciation. It is expected that the wrapping machine will have a useful life of five years and a salvage value equa to 25% of its purchase price. It is further expected that the wrapping machine will increase the firm's productivity and cause a 25.00% increase in s annual sales and total operating expenses (excluding depreciation and interest expense). If the wrapping machine is purchased, the firm will require an additional $5,000 in net working capital (NWC) The company's existing wrapping machine is almost completely worn out. It is flly depreciated and can't even be sold for scrap. As a result, there are no expected tax consequences associated with the disposal of the old wrapping Given this information, 1. Complete the following equation that assists in the calculation of the fi wrapping machine and calculate its value. rm's net investment (NINV) for the new NINV Purchase price + Shipping and Installation charges + Additional NwC, which equals $28,500. NINV-Purchase price +Shipping and Installation charges, which equals, $23,500. O NINV-Purchase price + Annual depreciation expense, which equals $23,525 2. Complete the following tale that can be used to compute the firm's incremental operating cash flows Firm Value With Wrapping Machine Firm Value Without Wrapping Machine Net Change esc FI FS F1 4