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The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine

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The Munsell Color Company is considering the purchase of a new batch polymer-bonding machine for producing its number one line of crayons. Although the machine being considered will not produce any increase in sales revenues, it will result in the before-tax reduction of labour costs by $200,000 per year. The machine has a purchase price of $250,000, and it would cost an additional $10,000 to install the machine. In addition, to operate this machine, inventory must be increased by $15,000. The machine is categorized as 10 -year property. After 2 years, it can be sold for $150,000. The tax rate is 34% and the cost of capital is 15%. What is the EBIT at the end of Year 1? Round to the whole number. Based on the data in Question 8 , what is the NOPAT at the end of Year 1? Round to the whole number. Question 10 Based on the data in Question 8, what is the OCF at the end of Year 1? Round to the whole number

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