You are evaluating the proposed acquisition of a new machine costing $61,000, and it falls...

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You are evaluating the proposed acquisition of a new machine costing $61,000, and it falls into the MACRS 3-year class. Purchase of the machine would require an increase of net operating working capital of $2,000, which will be recovered when the machine is sold. The machine would increase the firm's revenues by $26,000 per year and its operating costs by $12,000 per year. The machine is expected to be used only for 3 years and then be sold for $29,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at t=0, i.e., the initial cash flow? $50,000$52,000$56,000$61,000 the machine is sold. The machine would increase the firm's revenues by $26,000 per year and its operating costs by $12,000 per year. The machine is expected to be used only for 3 years and then be sold for $29,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at t=0, i.e., the initial cash flow? $50,000$52,000$56,000$61,000$63,000$68,000 You are evaluating the proposed acquisition of a new machine costing $61,000, and it falls into the MACRS 3-year class. Purchase of the machine would require an increase of net operating working capital of $2,000, which will be recovered when the machine is sold. The machine would increase the firm's revenues by $26,000 per year and its operating costs by $12,000 per year. The machine is expected to be used only for 3 years and then be sold for $29,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at t=0, i.e., the initial cash flow? $50,000$52,000$56,000$61,000 the machine is sold. The machine would increase the firm's revenues by $26,000 per year and its operating costs by $12,000 per year. The machine is expected to be used only for 3 years and then be sold for $29,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at t=0, i.e., the initial cash flow? $50,000$52,000$56,000$61,000$63,000$68,000

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