Problem 3 TenTin, Inc. is evaluating a project to replace an old drill press with which costs $42,000 and requires installation costs of $4000 and an additional working capital investment of $1000. The new press is expected to last 5 years with an estimated salvage value of $8000. The old press has a $2000 book value and a $900 salvage value. Revenues are expected to increase by $11,000 per year. and due to decreased maintenance costs, expenses should fall by $3000 per year The firm has a 40 percent marginal tax rate, a weighted average cost of capital of 14 percent, and will used simplified straight line depreciation to evaluate this project. a new model What is the Initial Outlay for this project? What are the Net Cash Flows per year of this project? What are the one-time, end of project Cash Flows from this project, if any? Evaluate the project using NPV and IRR