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You are evaluating the proposed acquisition of a new machine costing $ 5 2 , 0 0 0 , and it falls into the MACRS
You are evaluating the proposed acquisition of a new machine costing $ and it falls into the MACRS year class. Purchase of the machine would require an increase of net operating working capital of $ which will be recovered when the machine is sold. The machine would increase the firm's revenues by $ per year and its operating costs by $ per year. The machine is expected to be used only for years and then be sold for $ The firm's marginal tax rate is percent, and the project's cost of capital is percent. What is the net cash flow at t ie the initial cash flow?
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