Calculating project cash flows and$$ NPV$)$Weir$\text{'}$s Trucking, Inc. is considering the purchase of a new production machine for $$$$85$ comma $000.$ The purchase of this new machine will result in an increase in earnings before interest and taxes of $ $22$ comma $000$ per year. To operate this machine$$ properly, workers would have to go through a brief training session that would cost $ $4$ comma $500$ after tax. In$$ addition, it would cost $$$$6$ comma $000$ after tax to install this machine correctly. $$ Also, because this machine is extremely$$ efficient, its purchase would necessitate an increase in inventory of $$$$27$ comma $000.$ This machine has an expected life of $10$years$,$ after which it will have no salvage value. $$ Finally, to purchase the new$$ machine, it appears that the firm would have to borrow $$$$70$ comma $000$ at $10$ percent interest from its local$$ bank, resulting in additional interest payments of $ $7$ comma $000$ per year. Assume simplified$$ straight$-$line depreciation, that this machine is being depreciated down to$$ zero, a $33$ percent marginal tax$$ rate, and a required rate of return of $13$ percent.

a$.$What is the initial outlay associated with this$$ project?

b$.$What are the annual$$ after$-$tax cash flows associated with this project for years $1$ through $9?$

c$.$What is the terminal cash flow in year $10($that is$,$ the annual$$ after$-$tax cash flow in year $10$ plus any additional cash flows associated with termination of the$$ project$)?$

d$.$Should this machine be$$ purchased?