Use the following for the new e st by Thell The MAERSS O N ander sted CA Outo 1. now of . Coutlow of $30,120 QUESTION 2 What is the Depreciable Basis for the new machine? A 541,000 B. $44,000 C. $42,000 D.$40,000 E. $43,000 QUESTION 3 What is the OCF difference between the two machines at Time 12 A $11,028 B. $12,411 C. $9,550 D. $11,736 E. $8,920 QUESTION 4 What is the Tax Effect for selling the new machine at Time 2? A. None of the other choices is correct. B. Outflow of $470 C. Outflow of $1,328 D. Outflow of $1,109 E. Outflow of $912 QUESTION 5 What is the change in Net Working Capital at Time 0? A. None of the other choices is correct. B. Outflow of $11,000 C. Inflow of $11,000 D. Outflow of $3,000 E. Inflow of $3,000 QUESTION 6 What is the NPV for this replacement project? A None of the other choices is correct. B. $898 C. Negative $142 D.$ 273 E. $1,146 QUESTION 1 Use the following information for the next 5 questions. A company is analyzing the replacement of a color copier. The old machine was purchased 3 years ago for $30,000; it falls into the MACRS 5-year class; and it has 2 years of remaining life and an $8,000 salvage value 2 years from now. The current market value of the old machine is $17,000. The new machine has a price of $40,000, plus an additional $2,000 for installation and modification and an additional $2,000 for transportation. The new machine falls into the MACRS 5-year class, has a 2-year economic life, and can be salvaged for $23,000. The new machine will require a $7,000 increase in inventory, and accounts payable is expected to increase by $4,000. The new machine is expected to increase revenue by $8,000 per year and decrease costs by $3,000 per year. The firm has an 11 percent cost of capital and a marginal tax rate of 25 percent. The MACRS 5-year class uses the following percentages: 20%, 32%, 19%, 12%, 11%, and 6% (in that order). (Round all CFs to the nearest dollar.) What is the total net cash outflow at Year 0? O A. Outflow of $31,560 B. Outflow of $26,075 C. Outflow of $30,120 D. Outflow of $28,040 E. Outflow of $32,075