Defence Electronics Inc. is considering the purchase of a new machine for $325 The firm's old machine has a book value of $70,000 but can be sold today for $40,000. The new machine will be subject to a CCA rate of 25 percent. It is expe to save an annual cash flow of $62,000 per year for 8 years through reduced fuelna maintenance expenses. The company will need to invest $10,000 in spare parts inventory (working capital) when they purchase the machine. At the end of the 8 years the company believes it can sell the machine for $20,000. Defence Electronics Inc. has a 12 percent cost of capital and a 40 percent tax rate. 191 . V y Paragraph " B IV^ Required: A. Complete the following table by entering the present value, after-tax, of each of the following cash flows. Activate Go to Set . Enter all cash flows net of tax, where applicable. Round all cash flow numbers to zero decimal places Enter cash outflows as negative numbers. M. . Paragraph B I $ (325,000) Initial investment Trade-in Expense savings Salvage CCA tax shield Working capital (net of recovery) Net Present Value [1]