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The Sisyphon Corporation is considering investing in a new cano manufacturing machine that has an estimated life of three years. The cost of the machine

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The Sisyphon Corporation is considering investing in a new cano manufacturing machine that has an estimated life of three years. The cost of the machine 530,000 and the machine will be depreciated straight in over its three-year life to a sidual value of $0. The cane manufacturing machine will result in sales of 2200 canes in year 1. Salen aro estimated to grow by 8% per year each you through your 3. The price per cane Datashear will changes customers in $19 each and is to remain constant. The cares have a cost per unit to manufacture of $9 each Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various not working capital accounts. It is estimated that the Syphon Corporation neede to hold 3% of its annual sales in cash, 4% of its annual sales in accounts receivable, 10% of its annual sales in inventory, and 6% of its annuale in counts payable. The film is in the 20% tax bracket and has a cost of capital of 9% The change in net working capital from your 1 to year 2 in comst to O A. a decrease of $397 B. an increase of 5397 C. an increase of 5368 OD. a decrease of $388

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