q5 only letter answer

Answer questions 3, 4 and 5 based upon the following information Company X's management is evaluating a piece of machinery that costs $2 million. This machine will provide revenues of $500,000 each year and operating costs will be $130,000 each year. It is to be depreciated to a zero book value over ten years using the straight-line method. The company will use the machine for only eight years. At the end of eight years it is expected to have no salvage value. The new machine will require additional working capital of $200,000. Company X is profitable and expects to continue paying taxes at 35% Q3. The cash flow at time zero for this buy decision is closest to a. b. c. d. A net outflow of $2 million. A net outflow of $2.2 million. Anet outflow of $1.8 million. Anet inflow of $2 million. Q4. The recurring annual cash flow for this buy decision is closest to a. b. c. d. A net inflow of $570,000. A net inflow of $370,500. A net inflow of $310,500. A net inflow of $199,500. The difference between the total cash flow in year 8 and the recurring annual cash flow ie, the extra cash flow in year 8, above and beyond the recurring annual cash flow) is Q5. closest to a. A net inflow of $200,000. b. A net inflow of $310,000. c. A net inflow of $340,000. d. A net inflow of $600.000