Name z corno tind sillin all labels asn order to get credit for your answers in the blanks. TEJ Corporation is evaluating whether to replace one of its machines. The current Mast show your work in the space provided below get eredi unts (as done in class) machine was purchased 4 years 5-year class. It has 1 year of remaining life and a $2,000 salvage value one company could purchase a machine would cost $500 and installation would cost $300. The new to increase inventory needs by $900, and accounts payable is expected to increase by $300. The new year class, has a 1-year economic life and a salvage value at the end of 1 year of $14,000. 4,000 per year. The firm has a following percentages: 20% 32%, 19%, ago for $14,000 and falls into the MACRS year from now. The current market value of the older machine is $7,000. Alternatively, the new machine for $21,000. machine is expected Delivery of the new machine falls in the MACRS It is expected to increase revenue by $9,000 per year, and is expected to decrease costs by S 40% tax rate and a cost of capital of 10%. The MACRS 5-year class uses the 12% 11% and 6%. Round all CFs to the nearest dollar. (10 pts. each answer-put the correct sign!) 5- 1. Calculate the depreciable basis for the new machine. Answer: 2. Calculate the change in NWC at t=0, . Answer: 3. Calculate the tax effect from selling the old machine at t-0. Answer: 4. Calculate OCFi. Answer: 5. Calculate the tax effect from selling the new machine at t-n. Answer: 6. Calculate the overall NPV