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Your firm needs a computerized machine total lathe which costs $80,000, will generates $50,000 in cost savings, and requires $12.000 in net working capital for

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Your firm needs a computerized machine total lathe which costs $80,000, will generates $50,000 in cost savings, and requires $12.000 in net working capital for the project's life of 58 years. After 5 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 30% and a discount rate of 12%. What is the initial investment (cash flow) for this project? $ 12,000 $64, 400 $80,000 $92,000

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