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ebook You must eate a proposal to buy a new miling machine. The purchase price of the mining machine, Inouding shipping and installation cout, I

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ebook You must eate a proposal to buy a new miling machine. The purchase price of the mining machine, Inouding shipping and installation cout, I $251.000, and the oppment will be fully deprecated at the time parthes. The machine would be sola afer years for s60,000. The machine would require a 54,500 increase in niet operating working capital (increaved Inventory lees increased accounts payable). There would be na ette on revenues, but preta labor costs would decine by $37,000 per year. The margest tax rate 25%, and the WACC Sos. Also, the firm spert 34.500 last year bevestigating the feastity of using the machine How should the $4.500 entstyr behandled 1. The cost of research an incrementat cash flow and should be included in the analysis. 11. Only the tax effect of the researchers hold be included in the analysis III. Last year's expenditure should be treated terminat how and dealt with at the end of the projecte. Hence, it should not be included in the initiativement outlay TV. Last years expenditure is considered an opportunity and does not represent an incremental cash flow. Hence, should not be included in the analysis Last year's expenditure is considered sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis What is the intentant outlay for the machine for capital budgeting purpos after the 100% bonus depreciation is considered, that is what is the year project oth flow inter your answer as a post we Bound your answer to the dotar 2 What are the projects annual customs during Years 1, 2, nd? Du not found intermediate clon. Wound your rowers to the newest coa Yeart She theme

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