needs answered ASAP, thank you very much!!

7. Problem 12.09 (New Project Analysis) eBook You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $193,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $82,000. The machine would require a $4,000 increase in net operating working capital Increased Inventory less increased accounts payable). There would be no effect on revenues, but pretax labor costs would decline by $32,000 per year . The marginal tax rates 25%, and the WACC is 11%. Also, the firm spent $4,500 last year investigating the feasibility of using the machine. a. How should the $4,500 spent last year be handled? 1. Last year's expenditure la considered an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analyse 11. Last year's expenditure is considered a sunk cost and does not represent an incremental cash now. Hence, it should not be included in the analysis III. The cost of research is an incremental cash flow and should be induced in the analysis IV. Only the tax effect of the research expenses should be included in the analysis Last year's expenditure should be treated as a terminal cash now and dealt with at the end of the project's the. Hence, it should not be included in the initial investment outlay What is the wat investment outlay for the machine ter capital budgeting purposes after the 100% bonus depreciation considered, that what is the your project cash flow? Enter your answer as a positive value. Round your answer to the nearest collec c. What are the project's annunt cash flows during Years 1, 2, and ? Do not round intermediate calculations, Round your answers to the nearest della Year 116 Year 2: $ Year is d. Should the machine be purchased