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You are evaluating the proposed acquisition of a machine that costs $220.000. The machine will result in increased sales of $120,000 per year for 3

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You are evaluating the proposed acquisition of a machine that costs $220.000. The machine will result in increased sales of $120,000 per year for 3 years, but costs will increase by $25,000 per year. The machine will be depreciated 3 years MACRS and will be sold for an estimated $50,000 after 3 years. NWC will increase by $75,000 and remain constant for the life of the project. The firm's tax rate is 40 percent and discount rate is 9 percent. Calculate the project's cash flows

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