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(Calculating project cash flows and NPV) Raymobile Motors is considering the puechase of a now production machine for $400,000. The purchase of this machine wil

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(Calculating project cash flows and NPV) Raymobile Motors is considering the puechase of a now production machine for $400,000. The purchase of this machine wil resut in an increase in earnings before interest and taxes of $140,000 per year. To operase this machine property, workers would have to go through a briaf training sesssion that would cost $24,000 atter tax. In addicon, it would eost $5,500 after tax to install this machine correctly. Also, because this machine is extremely efficient, its purchaso would necessitate on increase in imentory of $26,000. This machine has an expected life of 10 years, atfer which is will have ne salvage value. Assume simplified straight-tre depreciation, that this machine is being depreciated down to zero, a 32 percent marginal. tax rate, and a tequired rate of return of 8 percent. a. What is the intial outlay associated with this project? b. What are the annual after-tax cash flows associated with thin project for years 1 through 9 ? c. What is the teminal cash flow in yoat 10 (that is, the annual aftertax cash fow in year to plus any additional cash flows associated with termination of the projoct)? d. Should this machine be purchased? a. The initial cash outday associated whth this project is 5 (Round to the nearest dollag) b. The annual aheotax cish fows associated with this project for years 1 through 9 aves $ (Hound to the nearest dolar) C. The terminal cash fow in yoor 10 (that is, the annual after-tax cash flow h year 10 plus any addtonal cash fow astociasd with terminabon of the progec) is } (Round to the neareat dollac.) d. Given the intormation, the machine (Select the best choice below) A. Should be purchased becaise the NPY is $463.541, making it a worthwae investmant for the company. A. shoula not be purchased because the NPV is - \$463.541, making at an unaccephabie investrient for the compiny

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