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QUESTION 4 Ella Inc. is considering purchasing a new milling machine. The new machine costs $203,173, plus installation fees of $18,486 and will generate revenue
QUESTION 4 Ella Inc. is considering purchasing a new milling machine. The new machine costs $203,173, plus installation fees of $18,486 and will generate revenue of $3,322,520 per year and cost of good sold of $1,217,367 over its 9-year life. The machine will be depreciated on a straight-line basis over its 9-year life to an estimated salvage value of 0. Mystic's marginal tax rate is 0%. Mystic will require $30,899 in NWC if the machine is purchased. Determine the annual operating cash flow in if the machine is purchased. round your answer to two decimals QUESTION 5 You have been offered a unique investment opportunity. If you invest $941 today, you will receive $200 one year from now, $868 two years from now, and $1,910 three years from now. What is the NPV of the opportunity if the cost of capital is 7% per year
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