Questions (The following information applies to the next seven problems.) You must evaluate a proposal to buy a new machine. Its base price is $50,000, installation costs would add another $10,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $40,000. The depreciation rates would thus be 33%, 45%, 15% and 7% for the first 4 years. The machine would require $8,000 increase in net working capital. Marginal tax rate is 40% and WACC is 10%. In addition, Fixed costs are expected to be $50,000 each year, and the firm spent $10,000 last year on market research. The below is expected information about the project. Year 1 2 3 Price 120 120 Quantity 500 450 Variable Oost 20000 18000 24000 120 600 5. Find the terminal Cash Flow at t = 3.* a. $2400 O b. $4200 O c. $33680 O d. $36,380 O e. None of the above 6. The project's NPV is O a. $37163 Ob -$37163 o $48000 O d. $2000 O e None of the above _OEVWXtc-eElpcdLuftzS_g/formResponse 7. Would you accept the project? a. Yes since NPV> WACC O b. No since NPV0 d. No since NPV