Johnson Products is considering purchasing a new milling machine that costs $120,000. The machines installation and shipping costs will total $4,500. If accepted, the milling machine project will require an initial net working capital investment of $20,000. Johnson plans to depreciate the machine on a straight-line basis over a period of 8 years. About a year ago, Johnson paid $12,000 to a consulting firm to conduct a feasibility study of the new milling machine. Johnsons marginal tax rate is 40 percent.

1. Calculate the projects net investment (NINV). Round your answer to the nearest dollar.

   $

2. Calculate the annual straight-line depreciation for the project. Round your answer to the nearest cent.

   $

3. Calculate MACRS depreciation assuming this is a 7-year class asset. Use Table 9A-3 to answer the question. Round your answers to the nearest dollar.

   Year	Depreciation
   1	$
   2	$
   3	$
   4	$
   5	$
   6	$
   7	$
   8	$