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Use the following information about the potential purchase of a new assembly line to answer the next eight (8) questions : Purchase Price for assembly

Use the following information about the potential purchase of a new assembly line to answer the next eight (8) questions:

Purchase Price for assembly line $(65,000)
Shipping cost for assembly line $ (5,000)
Change in Net Working Capital $(10,000)
Increase in Sales $ 45,000
Increase in Operating Expenses $ 30,000
Increase in Annual Depreciation $ 10,000
Tax Rate 40%
Expected Salvage Market Value for assembly line $ 35,000
Expected Salvage Book Value for assembly line $ 35,000
Company Cost of Capital 10%
Expected Life (in years) 3

Question 10 options:

Using the above information, calculate the Initial Outlay (CF0) for the project.

[Do not include the $ symbol in your response, and you should round to the nearest whole dollar (i.e., if your answer is $7,654.32, then submit 7654). If your answer is a cash outflow, be sure to use a "-" sign to indicate it as such (i.e., if your answer is a cash outflow of $5,432.10, then submit -5432).]

Question 11 (4 points)

Question 11 options:

Using the above information, calculate the Annual Operating Cash Flow (you may assume that the project entails the use of straight-line depreciation).

[Do not include the $ symbol in your response, and you should round to the nearest whole dollar (i.e., if your answer is $7,654.32, then submit 7654).]

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