Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: Year 10.00% 0 1 3 4 Cash flows -$950 $525 S485 $445 $405 The president of Kelly, Inc. has asked you to evaluate the proposed acquisition of a new machine. The machine's base price is $50,000 plus an additional $10,000 in installation costs, and it falls in the MACRS 3-year class life. Purchase of the machine would lead to an increase of $3,000 in working capital. The machine would increase the firm's before-tax operating revenues by $55,000 per year but also increase operating costs by $20,000 per year. The machine is expected to be used for three years and then sold for $8,000. The firm's marginal tax rate is 40%, and the project's cost of capital is 14%. What is the OCF in Year 1? $28,920 $25,220 $42.300 $33,840 $42,460 What is the OCF in Year 2? $33,640 $33,920 $31,800 O $38,800 O $38,640 What is the after-tax salvage value? $4,980 $6,480 $8,840 $4,200 $4,800