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If Rockyford accepts this investment proposal, the disposal of the old machinery and the investment in the new one will occur on December 31 of this year. The cash flows from the investment are expected to occur over a four-year period. Rockyford is subject to a 40% income tax rate for all ordinary income and capital gains and has a 14% weighted-average after-tax cost of capital. All operating and tax cash flows are assumed to occur at year-end. (For Parts 2 and 3 , use the relevant table from Appendix C-Table 1 or Table 2.) Required: 1. Determine the after-tax cash flow arising from disposing of the old machinery. 2. Determine the present value of the after-tax cash flows for the next 4-years. Round your answer to the nearest dollar. 3. Determine the present value of the depreciation tax shield for year 1. (Hint: Only discount for Year 1, not all 4 years.) Round your answer to the nearest dollar. 4. Which one of the following is the proper treatment for the additional $2,800 of net working capital required in the current year? Complete this question by entering your answers in the tabs below. Determine the present value of the after-tax cash flows for the next 4-years attributable to the cash operating savings. (Round your answer to the nearest whole dollar amount.) It Kockytord accepts tns Investment proposal, the alsposal or the old macnnery and the investment in the new one will occur on December 31 of this year. The cash flows from the investment are expected to occur over a four-year period. Rockyford is subject to a 40% income tax rate for all ordinary income and capital gains and has a 14% weighted-average after-tax cost of capital. All operating and tax cash flows are assumed to occur at year-end. (For Parts 2 and 3, use the relevant table from Appendix or Table 2.) Required: 1. Determine the after-tax cash flow arising from disposing of the old machinery. 2. Determine the present value of the after-tax cash flows for the next 4-years. Round your answer to the nearest dollar. 3. Determine the present value of the depreciation tax shield for year 1. (Hint: Only discount for Year 1, not all 4 years.) Round your answer to the nearest dollar. 4. Which one of the following is the proper treatment for the additional $2,800 of net working capital required in the current year? Complete this question by entering your answers in the tabs below. Which one of the following is the proper treatment for the additional $2,800 of net working capital required in the current year

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