Use the following information about a proposed investment for questions 29 through 32: New machine: - purchase price $ 400,000 - expected to generate net sales of $250,000 each year for the next 8 years - operating costs are expected to be $100,000 a year for the next 8 years -depreciation is on a straight-line basis, there is no salvage value -the tax rate is 20% - this project qualifies for an immediate 10% investment tax credit The net after tax cash outflow in year o. O A $392,000 O 8. $400,000 OC$ 360,000 OD. $320,000 QUESTION 30 The net cash flow after tax associated with this project in the first year is O A $250,000 OB. $20,000 OC. $110,000 OD. 5130,000 O E $120,000 QUESTION 31 if you were now told that this project will be partly financed with a loan for $300,000, Interest payments will be $18,000 each year. How would this information alter your calculation of net cash flows from operations? A reduce them by $14,600 per year B. reduce them by $18,000 O C.reduce them by $3,600 OD, interest should not be included in the operating cash flows, ignore it QUESTION 32 The tax savings from the depreciation expense in years O A $10,000 OB. $40,000 OC.$50,000 D. there is no tax saving dun to depreciation, it is a non-cash expense