just need help with #3

4 Saved You are reviewing some material that deals with Investment analysis, preparing for your first day on the job at Enrique Enterprises Consider the cash flows that follow. 1. The immediate payment required to purchase a $760,000 miling machine. 2. Straight-line depreciation of $36,000 in year 2 of a long-term Investment 3. Annual savings In cash operating costs of $66,000 over the next 8 years. 4. Sale of a machine for $43,000 at the end of its 6-year service life. The machine has a book value of $26,600. 5. A $7,600 equipment overhaul in year 5 that is fully deductible for income tax purposes. 00:46:4 PV of $1 at 108 PV of an ordinary annuity at 108 0.909 1.736 0.909 IV of $1 at 101 1.100 1.210 1.331 1.464 1.611 1.772 TV of an ordinary annuity at 108 1.000 2.100 3.310 4.641 6.105 7.716 0.826 0.751 3.170 3.791 0.621 0.564 Required: Calculate the discounted cash flow that is appropriate for each of the preceding items. Assume a 10% after-tax hurdle rate and a 30% Income tax rate. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations and round final answers to whole dollar amounts.) Year Discounted cash flow $ 750.000) 5 8 .921 Prev 6 of 8 !! Next >