Question: 1 points ABC Machine Shop is considering a 5-year project to improve its production efficiency, Buying a new machine press for $570,000 is estimated to

1 points ABC Machine Shop is considering a 5-year project to

1 points ABC Machine Shop is considering a 5-year project to improve its production efficiency, Buying a new machine press for $570,000 is estimated to result in 590.000 in annual pretax cost savings. 5100,000 in sales, increase 525.000 in inventory. Increase 40.000 in account receivables, and increase $15.000 in notes payable. The press falls in the MACRS S-year class (0.20, 0.32 0.192.0.1152 0.1152. 0.0576) and it will have a salvage value at the end of the project of $85.000. The shop's tax rate is 35 percent and its discount rate is 11 percent. What is the terminal cash flow in year 5? 5263.223.8 5253.323.8 5363.123.3 $163,400.5 @ 5193.350.4

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