Part B: Best Case evaluation Assume Sales Growth in Years 2 & 3 are 9% instead of 8.5% (Year 4's projections remain a sales decline of 5%). Also assume costs are 60.5% of sales instead of 60.75%. Note: Your company has determined that this scenario has a 5% chance of occurring. 9.0% -3.0 035 $1.100.000 $100.000 $253.100 $100,000 21.00% Based on this case, we would recommend buyingot buying the machine. 3 sales growth in yrs 2 & 3 4 sales growth in year 5 expenses a Norwes o cost of new Machine 7 Salvage Old Machine resale 9 New Machine resale 10 tot 11 required rate of retum 12 project time period 13 14 15 10 17 Capital Spending 1B 10 OCR 20 Revenues 21 Expenses 22 Depreciation Years 5665.000 $402.125 $200,000 $200,000 $724.850 5790.087 $750,562 $438,534 $478.002 $454,102 $200.000 $200.000 $200.000 24 Tanes Net Income $724,850 $790.087 $750,582 $438.534 $478.002 $454,102 $200.000 $200.000 $200.000 14 15 Years 10 17 Capital Spending 18 10 OCF: 20 Revenues $665.000 21 Expenses $402,325 22 Depreciation $200,000 $200.000 23 EBIT 24 Tanes 25 Net Income 20 Depreciation 27 OPERATING CASH FLOW 20 20 Net Working Capital -$100,000 30 31 32 Total Cash flow 33 34 NPV 35 IRR Activate Window Go to Settings to activate Widow Cover Page Part Part Part Part Conclusion