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Can you show me the step by step work with formula please? 14. (4 points) A firm is considering buying a new machine that has

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14. (4 points) A firm is considering buying a new machine that has a 5 year life. They plan to close the plant down after 4 years. Purchase Price: Increase in working capital: Annual sales: Annual operating cost: Annual interest expense: Depreciation 700,000 $ 150,000 S 1,400,000 $ 900,000 $ 150,000 $160,000 per year. It is estimated that the machine will be sold for $30,000 after 4 years. Tax rate is 30% and the cost of capital is 10%. A. Determine initial cash outflow. B. Determine Operational Cash Flows. C. Determine cash inflow from the sale of the machine after four years. D. Determine NPV. Should they buy the machine using the NPV rule

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