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Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify

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Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm. The machine will be sold after 3 years of use for $110,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues but is expected to save the firm $90,000 per year in before-tax operating costs, mainly labor. The company's marginal tax rate is 40%. What are the initial cash flows for the project? -$199,000 -$190,000 O-$42,000 -$232,000 Tinney & Smyth Inc. is considering the purchase of a new batch polymer-bonding machine for producing Crazy Rubber, a children's toy. The machine will increase EBITDA by 5215,000 per year for the next two years. The machine's purchase price is $260,000 and the salvage value at the end of two years is $46,800. To run the Crazy Rubber production line the company will need to purchase an inventory of polydimethylsiloxane and boric acid for a total cost of $15,000. The tax rate is 35% What are the terminal year cash flows? [Assume that depreciation is not tax deductible.) Round your answer to the nearest dollar $

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