ADAM COMPANY HAS AN OLD MACHINE THAT COST WHEN PURCHASED $130000THE FIRM DEPRECIATION METHOD IS MACRS FOR 3 YEARS (PERCENTAGED Y1=33\% Y2 45\%,Y3=15\%Y4=7\%) THE EXPECTED SELLING PRICE OF THE OLD MACHINE IS 65000 ADAM CAN BUY A NEW MACHINE WITH PRICE $170000 AND INSTALLATION COST OF $7000 AND SHIPPMENT $ 4000 IT WILL ALSO BE DEPRECIATED USING MACRS THE MACHINE REQUIRES RECEIVABLES TO INCREASE 12000 INVENTORY 19000 AND ACCOUNT PAYABLE WILL INCREASE BY $16000 REVENUES ARE EXPECTED TO BE 150000 AND EXPENSES ARE 60% OF REVENUES FOR THE 3 YEARS IF THE NEW MACHINE CAN BE SOLD AT THE END OF THE 3 YEARS FOR $22000 AND TAXES 38% K IS

ADAM COMPANY HAS AN OLD MACHINE THAT COST WHEN PURCHASED $130000, THE FIRM DEPRECIATION METHOD IS MACRS FOR 3 YEARS (PERCENTAGED Y1=33% Y2 45%,Y3=15% Y4=7%) THE EXPECTED SELLING PRICE OF THE OLD MACHINE IS 65000 ADAM CAN BUY A NEW MACHINE WITH PRICE $170000 AND INSTALLATION COST OF $7000 AND SHIPPMENT $ 4000 IT WILL ALSO BE DEPRECIATED USING MACRS. THE MACHINE REQUIRES RECEIVABLES TO INCREASE 12000 INVENTORY 19000 AND ACCOUNT PAYABLE WILL INCREASE BY $16000 REVENUES ARE EXPECTED TO BE 150000 AND EXPENSES ARE 60% OF REVENUES FOR THE 3 YEARS IF THE NEW MACHINE CAN BE SOLD AT THE END OF THE 3 YEARS FOR $22000 AND TAXES IS 38%,K IS 0.15 WHAT IS THE INITIAL INVESTMENT? WHAT IS THE DISCOUNTED OPERATING CASH FLOW FOR THE 3 YEARS? WHAT IS THE TERMINAL VALUE? WHAT IS THE NPV