Beechtree Furniture Company is considering adding a new line to its product mix. The production line would be set up in unused space in Beechtrees main plant. The machinerys invoice price would be approximately $250,000; another $15,000 in shipping charges would be required; and it would cost an additional $18,000 to install the equipment. Further, the firms inventories would have been increased by $22,000 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 $10,000 after 4 years of use. The new line would generate $72,000 in incremental sales and $48,000 in incremental costs (before taxes and excluding depreciation) in each of the next 4 years. The firms 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)?

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

C. If the project is terminated at the end of yr 4 and the machine is sold for the expected salvage value, what is the net cash flow at the time the project is terminated?