a. What would be the cash flow you would use for the deflation method in year 4? Round to the nearest integer.

b. What is the PW of this machine? Round to the nearest integer.

An automotive assembly factory needs to decide whether or not to purchase the new $300,000 machine to help speed up its assembly line. The estimated actual dollar cash flows are given below. The factory assumes an inflation rate of 4%, and the inflation free MARR of 8%. Complete an actual dollar analysis. n Cash Flow lo -300,000 1 75,000 12 95,000 13 80,000 14 90,000 15 85,000