**$ 10.00**

**You are to evaluate the proposed acquisition of a new machine which can be purchased for 60,000**

- From Business, General Business

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You are to evaluate the proposed acquisition of a new machine which can be purchased for 60,000 including shipping, modification and installation costs. The machine falls into the MACRS three year class life (33,45,15,7) and it will be sold after three years for 20,000. Use of the machine will require an increase in net operating working capital of 2000. The machine is expected to increase revenues by 20,000 per year. The firm's marginal tax rate is 40%**Calculate** the free cash flow for year 0**What** is the operating cash flow for Year 1?

Operating cash flow for year 2?

Operating cash flow for year 3?**What** is the after tax cash flow from the sale of the machine in year 3?**What** is the free cash flow for year 3**Calculate **the NPV for the project if the required rate of return is 10%

**You are to evaluate the proposed acquisition of a new machine which can be purchased for 60,000**

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- Submitted On 17 Jun, 2017 04:25:10

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