Question 25 3 pts A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The machine is MACRS 3 year class property and it will be sold after 3 years for $17,000. The machine would also require an increase in net working capital of $10,000. The machine is expected to increase before tax revenues by $40,000 per year. This form is in a 34% marginal tax bracket. MACRS 3 year factors are 33%, 45%, 15%, and 7% for years 1 through 4 respectively. What is the year 1 operating cash flow. 110,000 37,620 26,400 11,220 Question 26 3 pts Using a firms overall WACC to evaluate a project in a low risk division would result in a a correct allocation of resources to that division underallocation of resources to that division overallocation of resources to that division correct allocation of resources to the firm