$($Calculating project cash flows and NPV$)$ The Guo Chemical

Corporation is considering the purchase of a chemical analysis machine.

The purchase of this machine will result in an increase in earnings before

interest and taxes of $$75,000$ per year. The machine has a purchase price

of $$200,000,$ and it would cost an additional $$7,000$ after tax to install this

machine correctly. In addition, to operate this machine properly, inventory

must be increased by $$16,000.$ This machine has an expected life of $10$

years, after which time it will have no salvage value. Also, assume

simplified straight$-$line depreciation, that this machine is being depreciated

down to zero, a $36$ percent marginal tax rate, and a required rate of return

of $12$ percent.

a$.$ What is the initial outlay associated with this project?

b$.$ What are the annual after$-$tax cash flows associated with this project for

years $1$ through $9?$

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 flow associated with

termination of the project$)?$

d$.$ Should this machine be purchased?

a$.$ The initial cash outlay associated with this project is $$223000.($Round

to the nearest dollar.$)$

b$.$ The annual after$-$tax cash flows associated with this project for years $1$

through $9$ are $$.($Round to the nearest dollar.$)$