Consider the five items that follow, which are related to independent investment opportunities. Purchase price of a new machine: $870,000 Annual straight-line depreciation: $85,000 Annual savings in cash operating costs: $140,000 Advertising expenses related to a new marketing campaign in year 2: $45,000 Sale of an asset in year 6: Loss on sale, $70,000; proceeds received by seller, $33,000

Required: Complete the following table, inserting the (pre-discounted) cash flow amounts that would be used in a net-present-value analysis. Column A should be completed based on the assumption of no income taxes; in contrast, Column B should be completed assuming the relevant company is subject to a 30% income tax rate. Be sure to note cash outflows in parentheses.

	Column A: No Income Taxes	Column B: 30% Tax Rate
Purchase price of new machine
Annual straight-line depreciation
Annual savings in cash operating costs
Advertising expenses
Sale of Asset