a) What is the CFo (initial outlay) for this project? (without excel)

b) What is the terminal cash flow associated with this project? (without excel)

$120,000 $37,600 CURRENT MACHINE Purchased Two Years Ago Purchase Price Depreciation using 5-year MACRS (20, 32, 19.2, 11.52, 11.52, 5.76) Salvage Value NEW (REPLACEMENT) MACHINE Cost Shipping Facilities Modification Depreciation using 5-year MACRS (20, 32, 19.2, 11.52, 11.52, 5.76) Change in Net Working Capital Will increase revenues by Will decrease expenses by Salvage Value at end of six years Company tax rate MARR $180,000 $7,500 $15,000 $10,000 $30,000 $12,000 $8,000 34% 10%