CU, 46,800. UUHUS 2. Top -spin is considering to change an old graphite machine to a new carbon-fiber machine. Data and assumptions are as follows. Graphite Machine Carbon fiber Machine $390.000 purchase price current book value current disposal value Terminal disposal value for five years from now annual depreciation working capital $40,000 6,500 0 8,000 6.000 78.000 15.000 T=1,2,3,4 T=5 The expected additional operating cash inflows(except working capital) 130.000 121,000 working capital is deemed to be recovered at the end of investment Striaght line depreciation is applicable Tax effects of cash inflows and outflows occur at the same time that the cash inflows and outflows occur required rate of return income tax rate 40% 8% Below is a table for the present value of Si at compound interest. Year 6% 8% 10% 943 .926 .909 .890 .857 .826 .840 .794 .792 .735 .683 .747 .681 .621 12% .893 797 .712 .636 .567 .751 Q1) Compute the net present value of the new carbon-fiber machine without tax 02) Compute the net present value of the new carbon-fiber machine with tax