You have the opportunity to purchase an office building. You have a tenant lined up that will generate $7,000 per year in cash flows for three years. At the end of three years you anticipate selling the building for $300,000. How much would you be willing to pay for the building if the opportunity cost is 12% $230,347$207,468$16,812$278,419 Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $125,000, plus installation fees of $15,000 and will generate earning before interest and taxes of $50,000 per year over its 7-year life. The machine will be depreciated on a straight-fine basis over its 7-year life to an estimated salvage value of 0 . Mystic's marginal tax rate is 40%. Mystic will require $40,000 in NWC if the machine is purchased. What is the initial outlay? 20,00040,000165,000180,000