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I need help answering these questions. There are 3 questions the 2nd question has a several questions. Thank you very much. 8. The estimation of

I need help answering these questions. There are 3 questions the 2nd question has a several questions. Thank you very much. image text in transcribed
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8. The estimation of cash flows Aa Aa Consider the case of Beak's Birdhouse Builders Inc. (B3): Beak's Birdhouse Builders Inc. (B3) currently earns annual revenues of $2,750,000 and incurs total operating expenses (excluding depreciation and interest expense) of 45% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new computerized table saw. The table saw is expected to cost $10,000, plus $3,500 in freight and setup expenses, and will be depreciated using straight-line depreciation. It is expected that the table saw will have a useful life of ten years and a salvage value equal to 25% of its purchase price. It is further expected that the table saw will increase the firm's productivity and cause a 25.00% increase in the firm's annual sales and total operating expenses (excluding depreciation and interest expense). If the table saw is purchased, the firm will require an additional $5,000 in net working capital (NWO). The company's existing table saw is almost completely worn out. It is fully depreciated and can't even be sold for scrap. As a result, there are no expected tax consequences associnted with the disposal of the old table saw

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