Beechtree Furniture Company is considering adding a new line to its

product mix. The production line would be set up in unused space in

Beechtree's main plant. The machinery's invoice price would be

approximately $$320,000$; another $$16,000$ in shipping charges would be

required; and it would cost an additional $$45,000$ to install the

equipment. Further, the firm's inventories would have been increased by

$$38,000$ to handle the new line. The machinery has an economic life of

$4$ years and will be the depreciated fully using the straight$-$line method.

The machinery is expected to have a salvage value of $$25,000$ after $4$

years of use. The new line would generate $$180,000$ in incremental sales

and $$70,000$ in incremental costs $($before taxes and excluding

depreciation$)$ in each of the next $4$ years. The firm's tax rate is $25$

percent, and its overall weighted average cost of capital is $12$ percent.

a$.$ What is Beechtree's net investment outlay on this project $($yr $0)?$ $

$($whole number, no decimals$)$

b$.$ What are the net cash flows for the first year $($yr $1)$ of the project? $

$($whole number, no decimals$)$

c$.$ If the project is terminated at the end of $yr4$ and the machine is sold

for the expected salvage value, what is the net cash flow at the time the

project is terminated? $

$($whole number, no decimals$)$