Corn Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand.
Austin Beagle, production manager, is considering purchasing a machine that will make
the corn dogs. Austin has shopped for machines and found that the machine he wants
will cost $160,000. In addition, Austin estimates that the new machine will increase the
company's annual net cash inflows by $53,000. The machine will have a 16-year useful
life and no salvage value.
Instructions
A.	Identify the following amounts:
	1.	Initial Cash Outlay
	2.	Differential Annual Operating Cash Flow
	3.	Differential Annual Net Income