Your company is currently considering the purchase of a new production machine at a cost of $55,000 (including installation costs) and expects to increase revenues by the following amounts each year as a result of the new equipment: Year1=$19,000Year2=$28,000Year3=$30,000Year4=$35,000Year5=$15,000Year6=$10,000 Fixed costs for running the new equipment will be $5,000 per year, while variable costs will be 15% of sales. The assets depreciate according to the 5 -year MACRS table. The company is not currently paying any interest expense, and they are taxed at 31% of EBIT. Create a proforma income statement, and enter the Year 5 Net Income, rounded to the nearest dollar. Answer: Continuing with the problem and data in #4 above, if the company paid $52,000 for the equipment, $3,000 for installation costs, and $8,000 for an increase in net working capital (mainly increase raw materials inventory to support the added machinery), calculate the initial year's total cash outflow. Enter your answer, rounded to the nearest dollar. Remember that since it is an outflow of cash, it should be entered as a negative. Answer: Continuing with the example in #4, if at the end of the useful life of the equipment, the company can sell it for a salvage value of $3,000, what is the after-tax cash flow from salvage in the terminal year? (Remember that the tax rate is 31% ). Round your answer to the nearest dollar. Answer: Continuing with the example in #4, what is the total year 6 cash flow resulting from this project (equipment purchase)? Round your answer to the nearest dollar. Answer: Using the data from problems 4 through 8 , calculate the payback period for this equipment. Round to 2 decimal places