Please answer both questions they've been answered wrong previously

PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs (excluding depreciation)17.5 million Depreciation 5 million Interest expense 5 million The company has a 40% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000 a. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar. b. If this project would cannibalize other projects by $2.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar The firm's project's cash flow would now be $ c. Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest dollar. The firm's project's cash flow woul Select by $ decrease NEW PROJECT ANALYSIS You must evaluate a proposal to buy a new milling machine. The base price is $184,000, and shipping and installation costs would add another $8,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $82,800. The applicable depreciation rates are 33%, 45%, 15%, and 7%. The machine would require a $7,000 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 $33,000 per year. The marginal tax rate is 35%, and the WACC is 13%. Also, the firm spent $5,000 last year investigating the feasibility of using the machine. a. How should the $5,000 spent last year be handled? I. Last year's expenditure is considered as an opportunity cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis II. Last year's expenditure is considered as a sunk cost and does not represent an incremental cash flow. Hence, it should not be included in the analysis. III. The cost of research is an incremental cash flow and should be included in the analysis. IV. Only the tax effect of the research expenses should be included in the analysis. V. Last year's expenditure should be treated as a terminal cash flow and dealt with at the end of the project's life. Hence, it should not be included in the initial investment outlay. Sat-B b. What is the initial investment outlay for the machine for capital budgeting purposes, that is what is the Year O project cash flow? Round your answer to the nearest cent. c. What are the project's annual cash flows during Years 1, 2, and 37 Round your answer to the nearest cent. Do not round your intermediate calculations. Year 15 Year 2$ Year 3$ d. Should the machine be purchased