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Your company plans to produce a product for two more years and then to shut down production. You are considering replacing an old machine used

image text in transcribed Your company plans to produce a product for two more years and then to shut down production. You are considering replacing an old machine used in production with a new machine. The Old machine originally cost \$720 and was bought Three (3) years ago (i.e. it has depreciated for three years). It could be sold today for $447 or sold in two years for $125. The New machine would cost $870 and could be sold in two years for $486. The new machine is more efficient than the old machine and would reduce waste, and therefore the cost of materials, by $443 per year. Due to the lower waste, we could also have a one-time reduction in inventory of 60 . The firm's tax rate is 43%. Both machines are in the 4 year MACRS class, use these rounded depreciation amounts of 15%,45%,33% and 7% in your calculation. What are the total Operating Cash Flows in the first year (Year 1) with the new machine? Enter your answer to the nearest \$.01. Do not use \$ or, in your answer. Use a - sign if the cash flows are negative. Your

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