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A firm is considering the purchase of a new machine at a priceof $150,000. The machine falls into the three-year MACRSclass. If the new machine is acquired, the firm's investment in networking capital will immediately increase by $10,000 and thenremain at that level throughout the life of the project. At the endof 3 years, the new machine can be sold for $16,000. Earningsbefore depreciation, interest and taxes (EBDIT) are expected to beas follows with respect to the new machine:Year 1: EBDIT = $58,000Year 2: EBDIT = $75,000Year 3: EBDIT = $85,000The firm is subject to a 40 percent tax rate and the firm'sdiscount rate is 9 percent. Requirement 1:Calculate the missing data in the table below for each yearover the life of this project. (Do not round intermediatecalculations. Round your answers to the nearest whole dollar (e.g.,32).)YearEBDITDepreciationEBITTaxes1$58,000$$$2$75,000$$$3$85,000$$$ Requirement 2:What is the book value of the machine at the end of Year 3?(Do not round intermediate calculations. Round your answerto the nearest whole dollar (e.g., 32).) Book Value (End of Year 3)$ Requirement 3:Calculate the taxes related to the sale of the asset at the endof the project and the after-tax salvage value of the machine.(Do not round intermediate calculations. Net tax savingsshould be indicated by a minus sign. Round your answer to thenearest whole dollar (e.g., 32).) Taxes$After-Tax Salvage Value$ Requirement 4:What is the net cash flow of the project for each of thefollowing years? (Do not roundintermediate calculations. Net cash outflowsshould be indicated by a minus sign.Round your answers to the nearest whole dollar(e.g., 32).) YearCash Flow0$ 1 2 3 Requirement 5:What is the NPV of the project? (Enterrounded answer as directed, but do not use rounded numbers inintermediate calculations. Round your answer to 2decimal places (e.g., 32.16).) NPV$
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