principle of finance

(6) QRW Corp. needs to replace an old machine with a new, more efficient model . The new machine being considered will result in an increase in earnings before interest and taxes of $70,000 per year. The purchase price is $200,000, and it would cost an additional $10,000 to properly install the machine. In addition, to properly operate the machine, inventory must be increased by $10,000. This machine has an expected life of 10 years, with no salvage value. Assume that a straight-line depreciation method being used and that this machine is being depreciated down to zero, the marginal tax rate is 34%, and a required rate of return of 15%. m) Solve for the value of the initial outlay associated with this project. [Selesaikan untuk nilai modal awal yang berkaitan dengan projek ini (3 Marks/ Markah) (11) Solve for the value of annual after-tax cash flows for this project from years 1 through 9. [Selesaikan untuk nilai bagi aliran tunai tahunan selepas cukai tuk projek bu dari tahun I hingga 9) K4 Marks. Markah) (111) Solve for the value of terminal cash flow in year 10 (annual after-tax cash flow in year 10 plus any additional cash flows associated with the termination of the project). Selesaikan untuk nilal bag, aliran tunal terminal pada tahun ke-Jo (altran tunai selepas cukal tahunan pada tahun 20 ditambah sebarang aliran tunai tambahan yang berkaitan dengan penamatan projek) (3 Marks Markah) (iv) Solve for the value to show whether this machine should be purchase or not. [Selesaikan untuk nilai bagi menunjukkan samada mesin ini perlu dibeli atau pun tidak] (6 Marks Markah)