Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $125,000, plus installation fees of $15,000 and will generate earning before inferest and taxes of $50,000 per year over ils 7 -year life. The machine will be depreciated on a straight-1ine basis over its 7 -year life to an estirnated salvage value of 0 . Mystic's marginal tax rate is 40%. Mystic will require $40,000 in NWC if the machine is purchased. What are the annual cash flows? $50,000 $40,000 $20,000 $30.000