Question: 3. (34 points) A vending machine has a intitial cost of ( $ 20,000 ). Annual operating and maintenance costs for the first year will


3. (34 points) A vending machine has a intitial cost of \\( \\$ 20,000 \\). Annual operating and maintenance costs for the first year will be \\( \\$ 10,000 \\). These costs will increase \\( \\$ 1,000 \\) per year. Sales are projected to be fixed at \\$2,5,000 per year. The machine will be operating for 5 years and has negligible salvage value. Inlation will average 4.0 percent. Determine the befone-tax cash flow streams expressed in a) constant dollars (\\$C), and b) then current dollars (ST). Depreciable assets that are dassified as MACRS-GDS S-year property have depreciation percentages of \20 and \5.76 in years \\( 1.2,3,4,5 \\), and 6 . respectively, MACRS-CDS 3 -year property \=33.33 in years \\( 1,2,3 \\), and 4, respectively
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