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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. MACRS Depreciation Rates Year 10-year 1 10% 2 18% WN 3 14.4% D Question 9 5 pts Based on the data in Question 8, what is the NOPAT at the end of Year 1? Round to the whole number. D Question 10 5 pts 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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