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QUESTION $3$

Three ligh schoot fiends founded a company that makes widjets. The trio are expanding and want to begin manufacturing deluxe widgets. This will require new equipment. You

$15$ points

Luve the following information on this investment project, what are the after$-$tax cash flows that it is expected to generate? $($my answers are in thousands$)$

Cost of new machinery: $$90,000$

Expected life of machinery: $5$ years

Expected Salvage Value of new machinery after $5$ years: $$20,000$

Dejreciation method: stright line

Expected sales of deluxe widgets: $$140,000$ per year

Cosi of row material: $$70,000$ per year

Cost of additional labor $$20,000$ per year

Additional Net Working Capital required at the start of the project: $$20,000$

Tax mie $35\%.$

a$.-\frac{110}{27\mathrm{.}1}\frac{?}{?}\frac{27\mathrm{.}1}{27\mathrm{.}1}\frac{?}{?}\frac{27\mathrm{.}1}{78\mathrm{.}8}$

b$.\frac{110}{38\mathrm{.}8}\frac{?}{?}\frac{38\mathrm{.}8}{38\mathrm{.}8}\frac{?}{?}\frac{3838}{51\mathrm{.}8}$

$c-\frac{103}{38\mathrm{.}8}\frac{?}{?}\frac{388}{388}\frac{?}{?}\frac{388}{71\mathrm{.}8}$

d$.\frac{90}{27\mathrm{.}1}\frac{?}{?}\frac{27\mathrm{.}1}{27\mathrm{.}1}\frac{?}{?}\frac{27\mathrm{.}1}{78\mathrm{.}8}$

e$.-\frac{110}{38\mathrm{.}8}\frac{?}{?}\frac{38\mathrm{.}8}{38\mathrm{.}8}\frac{?}{?}\frac{38\mathrm{.}8}{718}$

QUESTION $4$