Check my work Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.512 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $117,600. The project requires an initial investment in net working capital of $168,000. The project is estimated to generate $1,344,000 in annual sales, with costs of $537,600. The tax rate is 23 percent and the required return on the project is 16 percent. 10 points What is the project's Year O net cash flow? eBook Print References What is the project's Year 1 net cash flow? Check my work 10 Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,150,000 and will last for 3 years. Variable costs are 39 percent of sales, and fixed costs are $177,000 per year. Machine B costs $4,470,000 and will last for 6 years. Variable costs for this machine are 29 percent of sales and fixed costs are $105,000 per year. The sales for each machine will be $8.94 million per year. The required return is 10 percent and the tax rate is 21 percent. Both machines will be depreciated on a straight-line basis. points eBook If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine A? Print References If the company plans to replace the machine when it wears out on a perpetual basis, what is the EAC for machine B