Monsters Inc. is considering the purchase of a new production machine for $100,000 after tax. The company conducted a marketing survey last month to assess how efficient the machine is, costing $5,000 after tax. The purchase of this machine will produce an increase in before-tax sales revenues by $25,000 and it will result in a before-tax reduction of labor costs by $15,000 per year. To operate this machine properly, workers would have to go through a brief training session that would cost $5,000 after-tax. It would cost $8,000 after-tax to install this machine properly. Also, because this machine is extremely efficient, its purchase would not only necessitate a decrease in inventory of $20,000 but also result in an increase in account payables by $5,000. This machine has an expected life of five years, after which it will have a before-tax salvage value of $10,000. Finally, to purchase the new machine, it appears that the firm would have to borrow $80,000 at 10% interest from its local bank, resulting in additional before-tax interest payments of $8,000 per year. Assume simplified straight-line depreciation and that this machine is being depreciated down to zero, a 20% marginal tax rate, and a required rate of return of 10%. A. What is the initial outlay associated with this project? B. What is the operating cash flow per year? C. What is the terminal cash flow? D. Should this machine be purchased? Support your argument with NPV