$($New project analysis$)$ Raymobile Motors is considering the purchase of a new production machine for $$600,000.$ The purchase of this machine will result in an increase in earnings before interest and taxes of $$110,000$ per year. To operate this machine properly, workers would have to go through a brief training session that would cost $$20,000$ after taxes. It would cost $$6,000$ to install the machine properly. Also, because the machine is extremely efficient, its purchase would necessitate an increase in inventory of $$50,000.$ This machine has an expected life of $10$ years, after which it will have no salvage value. Assume simplified straight$-$line depreciation and that this machine is being depreciated down to zero, a $35$ percent marginal tax rate, and a required rate of return of $18$ percent.

a$.$ What is the initial outlay associated with this project?

b$.$ What are the annual after$-$tax cash flows associated with this project for years $1$ through $9?$

c$.$ What is the terminal cash flow in year $10($what is the annual after$-$tax cash flow in year $10$ plus any additional cash flows associated with the termination of the project$)?$

d$.$ Should the machine be purchased?

a$.$ What is the initial outlay associated with this project?

$ $($Round to the nearest dollar.$)$

b$.$ What are the annual after$-$tax cash flows associated with this project for years $1$ through $9($note that the cash flows for years $1$ through $9$ are equal$)?$

$($Round to the nearest dollar.$)$

c$.$ What is the terminal cash flow in year $10($what is the annual after$-$tax cash flow in year $10$ plus any additional cash flows associated with the termination of the project$)?$

$($Round to the nearest dollar.$)$

d$.$ What is the project's NPV given a required rate of return of $18$ percent?

$($Round to the nearest dollar.$)$

Should the machine be purchased? $($Select the best choice below.$)$

A$.$ No$.$ The project's NPV is negative.

B$.$ Yes. The project's NPV is positive.