Bar Sweets Inc. is planning to add a new product to its line. To manufacture this product, the company will need to purchase a new machine costing $500,000 with an expected 5-year useful life and a $50,000 salvage value. For this company, all sales are for cash and all costs are out-of-pocket, except for depreciation on the new machine. Sales and cost information Expected annual sales of new product $1,375,000 Expected annual costs of new product: Direct Materials $375,000 Direct Labor $400,000 Overhead (does not include depreciation) $250,000 Selling and Administrative Expenses $150,000 Income Taxes 25% TABLE A. Vid HH HOS HU NE WE VO LIND 11 tut 11 TIS HIE MIC re IM 1 1 one TABLE Preto was MO BARN 10 WOO FIND WO NI D WED LIRD WO NE ANS WILD OS DS OP KNO SO WO WED WO O 2 041 B 14 IRO HIN EM 64194 11 CH I aire VOTE 3 WO TO NO IS 10 19 LIPID . D HOWO One 1 16 DO DAN 8:49 SO RE w 2018 NO IND HO HO NO VIDED DOW WO INI 100 NO TO HUTO ON 0 VE NO IND wit BIRD w 2011 VID O IP INO TABLE --- HERE 16 HINT NE ME WE VE NE IN HE w WS TI TENIS NIS 11 HN NIE 14 1 WE IN 214 Required: 1. Compute straight-line depreciation for the new machine. (3 points) 2. Determine net income for each year. (5 points) 3. Determine net cash flow for each year. (4 points) 4. Compute the machine's payback period, assume cash flows occur evenly. 14 points) 5. Compute the accounting rate of return. (4 points) 6. Compute net present value assuming a 10% discount rate. (5 points)