(Cakulating project cash flows and NPV) Martin Manufacturing is considering whether to add new capacity to its production line with addition of a $1.200.000 assembly center. The purchase would result in an increase in samnings before interest and taxes of 5450 600 per year it would cost $70.000 itar as to install the needed equipment in addition to operate this machine properly workers would have to go through abdel Waining session that would cost 550.000 ahertaxes. Also, because this machine is extremely licent. its purchase would necessitate an increase in inventory of $120.000 This machine has an expected We of 10 years after which time it would have no salvage valus. Asume the use of the simplified straight the method to depreciate the machine down to 2010. a 28 percent marginal tax rate and a required rate of retum of 11 percent What is the initial cash outlay associated with this project? b. What are the annual net cash low asociated with this project for years through 97 d. machine What is the terminal cash flow in Year 10 what is the annual to cash flow in Year 18 plus any additional cash fios associated with mination of the project? A: The initial cash outlay associated with this project is sound to the nearest dolar) 6. The annual net cash flows associated with this project for Years 1 torough 9 wres Round to the nearest dotar) c. The terminal cash flow in year 10 (that is, the annual tree cath fow in Year 10 plus any additional cash flow noclated with termination of the project) is (Round to the nearot dotat Given the information, the machine (Select the best choice below) OA should not be purchased because the NPV-51287.752. making it an unacceptable investment for the company OB should be purchased because the NPV 51.287.752, making a worthwhile investment for the company