Your company is considering a machine that will cost $1,000 at Time 0 and which can be sold after 3 years for a $100 gain. To operate the machine, $200 must be invested at Time 0 in net operating working capital for inventory: these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $900/year for 3 years: variable operating costs (excluding depreciation) will be 50 percent of sales. The machine will have depreciation expenses of $500 $300. and S200 in Years 1. 2. and 3. respectively. The company has a 40 percent tax rate. 30. When evaluating the cash flows associated with a capital budgeting project, shipping and installation costs associated with the purchase of an asset, such as a lathe, are considered part of the Your company is considering a machine that will cost $1,000 at Time 0 and which can be sold after 3 years for a $100 gain. To operate the machine, $200 must be invested at Time 0 in net operating working capital for inventory: these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $900/year for 3 years: variable operating costs (excluding depreciation) will be 50 percent of sales. The machine will have depreciation expenses of $500 $300. and S200 in Years 1. 2. and 3. respectively. The company has a 40 percent tax rate. 30. When evaluating the cash flows associated with a capital budgeting project, shipping and installation costs associated with the purchase of an asset, such as a lathe, are considered part of the