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Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working

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Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $120,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project? $1.140,000 O $1,128,100 O $1,225,000 O $1,236.900 $1.240,300 D Question 12 1 pts Windsor Corporation is considering an investment which will require the purchase of a machine, The machine costs $800,000, has a class life of 5 years, and will be depreciated using simplified straight-line depreciation. The firm's marginal tax rate is 35%. The incremental cash inflows expected over the 5-year life of the project are $270,000 per year, and cash expenses are $80.000 per year. In addition, the new machine will reduce defects by $15,000 per year. The new machine will require a one-time increase in net working capital of $25,000 at the time of Installation. At the end of 5 years, the machine will be worthless, and the firm will not replace it Calculate the annual cash flow resulting from this project. $189.250 $156,750 @ $9.750 MacBook Air

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