The Wall, Co. Is considering the purchase of some new machinery. The new machinery costs $100,000. The machinery falis into the MACRS three-year class, and it will be sold after three years for $7,500. The depreciation percentages each year are: Year 1=33%, Year 2=45%, Year 3=15%, Year 4=7%. The machinery will require The Wall to increase its working capital by $4,800 which wili be recovered at the end of the machinery's life. The machinery has a three year life and will increase The Wall's revenues by $150,000 and costs by $25,000 for each year of the project's three year: life. The Wall has a 10% cost of capital and has a 20% tax rate. What is the initial cash outfiow for this project? Muitiple Choice $4,800 $112.300 $100,000 $104,800 The Wall, Co. is considering the purchase of some new machinery. The new machinery costs $100,000. The machinery falls into the MACRS three-year class, and it wilt be sold afer three years for $7,500. The doproctaton percentages each year are: Year 1=33%, Year 2.45%, Year 3=15%, Year 4=7%. The machinety will require The Wall to increase its working capital by $4,800 which will be recovered at the end of the machinery's life. The machinery has a three year life. and will increase The Wall's revenues by $150,000 and costs by $25,000 for each year of the project's three year life. The Wall has a 10% cost of capital and has a 20% tax rate. Whot is the total cash flow in year 3 of the project? Mutiple Cholce $707.700 $15,400 $103.000 $115,200 The Wall, Co. is considering the purchase of some new machinecy. The new machinery costs $100,000. The machinery falls into the MACRS three-year class, and it will be sold after three yeacs for $7,500. The depreciation percentages each year are: Year 1=33%, Year 2=45%, Year 3=15%, Year 4=7%. The mochinery wil require The Wall to increase its working capital by $4,800 which wal be recovered at the end of the machinery's life. The machinery has a three year life and will increase The Woll's revenues by $150,000 and costs by $25,000 for each year of the project's three year life. The Wall has a 10% cosi of capital and thas a 20% tax rate. What is the operating cash flow in year 2 for the project? Muatiple Choice $100600 $100.000 $109000 $100,000