You took over a small apparel company that your parents founded which caters to fraternities and soroities. As one of your first moves you have decided to expand into ball caps. To do that you need to invest in new equipment. Is that a good idea? You have the following financial estimates. What are the expected incremental after-tax cash flows? (my answers are in thousands) o Cost of hat making machinery: $80,000 O Expected life of machinery: 5 years Expected Salvage Value of hat making machinery after 5 years: 520,000 o Depreciation method: straight line Expected sales of hats: $120,000 per year o Cost of raw material: $70,000 per year o Cost of additional labor: $20,000 per year o Additional Net Working Capital required at the start of the project: $20,000 o Tax rate: 35% a-100/25.1/2.1/2.1/25.1/58.1 -93/25.1/2.1/25.1/25.1/58.1 O c. 100/25.1/25.1/25.1/25.1/38.1 d. - 100/9.1 79.1 19.1 79.1 / 38.1 e. -80/14.7/14.7/14.7/14,7/65.1