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If the machine produces annual units of 1,000 units. Each unit has sale price of $200 per unit and cost of $100 per unit. Sale

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If the machine produces annual units of 1,000 units. Each unit has sale price of $200 per unit and cost of $100 per unit. Sale price and cost will increase 3% per year. Given the machine is bought at $200,000 with shipping cost of $10,000 and installation cost of $30,000. The machine has economic life of 4 years. The tax rate is 25%. If NWC=12%* Sale(t+1), what would be FCF at year 1? Year MACRS 33% 45% 15% 47% O 1) -$264,000. 2) $131,129.97. 3) $94.080. 4) $103,508.40 5) $94.800

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