LEVEL A (BASIC) Al. (Net investment outlay) The cost of a new machine is $70,000 plus an additional $8.00 (Netnvestment outlay) The ok value ot $15.000 and can be sold for $7.000. An investment of $15,000 in working capital is also required. The marginal tax rate is 30%. What is the net investment outlay? al) Naples Transportation in Binghamton has expansion expected to increase its inventories by $30 million. Naples will also increase A4. Investment in working capit plans that are its accounts receivable by $15 million and its accounts payable by $8 million. What invest- ment in net working capital is required? A6. (Basic capital budgeting) An investment of $30,000 will be depreciated straight line for 10 years down to a zero salvage value. For its 10-year life, the investment will generate annual sales of $12,000 and annual cash operating expenses of $2,000. Although the investment is depreciated to a zero book value, it should sell for $3,000 in 10 years. The marginal income tax rate is 40% and the cost of capital is 10% a. What are the net operating cash flows after tax? b. What is the NPV of the investment