helpCost of new machine $$850,000.$

Shipping & installation will be $$50,000.$

$$300,000$ in net working capital required.

Simplified using straight method with zero salvage value

Annual fixed cost by $$800,000.$

Operating or variable costs is $$85$ per unit production.

Expected sales $1000$ unit per year for $10$ years at selling price

$$250$ per unit.

Cost of capital $=8\%,$ marginal tax rate $=34\%.$

Question :

Calculate the initial outlay for this project.

Culculate annual after$-$tax cash flows associated with this project for

year $1$ through $9,$ and the terminal cash flow in year $10.$