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(Calculating project cash flows and NPV) Raymobile Motors is considering the purchase of a new production machine for $400,000. The purchase of thes machine will

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(Calculating project cash flows and NPV) Raymobile Motors is considering the purchase of a new production machine for $400,000. The purchase of thes machine will result in an increase in earnings before interest and texes of $180,000 per year. To operate this machine properly. workers would haye to go through a briof training session that world cost $20,000 after tax. In addition, it would cost $4,500 after tax to install this machine correctly. Also, becatise this machine is exiremely efficient, as purchase would necessitate an increase in inventory of $28,000. This machine has an expected life of 10 years, after which it will hirve no salvage value. Astume simplified straight-line depreciation, that this machine is being doprociated down to zoro, a 30 percent marginal tax rate, and a required mate of return of 8 percent. a. What is the initial outlay astrociated with this projoct? b. What are the annual after-tax cash flows associated with this project for yoars 1 through 97 c. What is the terminal cash flow in year 10 (that is, the annual after-tax cash flow in year 10 plus any additional cash flows associated with termination of the projecti? d. Should this machine be purchased

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