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The new merhine-has a purchase peice of $1,150,000, sing The new machine has a pirchase peice of $1,150,000, an estimated useful life of 5 years, and an estimated salvage value of $160,000. The new machine is eligible for 1000 ? bonus depreciation at the time of purchase, It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective battles In total, an annual savings before taxes of $200,000 will be realized if the new machine is installed, The company's marginal tax rate is 25%, and it has a 12%, WACC. a. What initial cash outlay is required for the new mactine after bonus depreciation is considered? Cash outflow should be indicated by a minus sign. Round your aniswer to the nearest dollar: is b. Calculate the change in the annual depreciation expense if the replacement is made, Negative change values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar. C. What are the inctemental cash flows in Years 1 throush 57 found vour answers to the nearest dallar. d. Should the firm purchase the new machine? e. In general, how would each of the following factors affect the invesoment decision, and how should each be treated? 1. The expected life of the exasting machine decreases. The new machine will look than before dae to the relative of the cash flows attributable to it. should be made: 2. The WACC is not constant, but is increasing as Bagbee adds more prolects into its copeal budget for the year, The NPY will doe to a capital cost