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Ballesteros Incorporated is considering a four year project. The project will require the purchase of a work cell (machine) for $600,000 that will be straight-line

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Ballesteros Incorporated is considering a four year project. The project will require the purchase of a work cell (machine) for $600,000 that will be straight-line depreciated to zero over a 10-year period. The firm has projected the following numbers for the project: YEAR SALES Cost of Goods Other expenses Interest expense 1 $250,000 30% of sales 10% of sales $10,000 The project will not have any side effects or require any working capital. The marginal tax rate for the firm is 35%. What is the project cas flow for year 1? $112,000 $118,500 $108,500 O $116,625 $123,125

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