Quip Corporation wants to purchase a new machine for $320,000. Management predicts that the machine will produce sales of $210,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $85,000 per year. The firm uses the straight-line depreciation and expects the machine to have a residual value of $54,000. Quip's combined income tax rate, t, is 40.00%. The required rate of return is 10.00%
What is the net after-tax cash inflow in Year 1 from the proposed investment?
$76,280
$96,280
$108,280
$100,280
$114,280