Basket Wonders (BW) is considering the purchase of a new basket weaving machine. The machine will cost $50,000 plus $20,000 for shipping and installation. Net working capital will rise by $5,000. Lisa Miller forecasts that revenues will increase by $110,000 for each of the next 4 years and will then be sold (scrapped) for $10,000 at the end of the fourth year, when the project ends. Operating costs will rise by $70,000 for each of the next four years. BW is in the 40% tax bracket. a) Determine the initial cash outflow b) Compute the interim cash flows for each year c) Compute the terminal cash flow d) Compute the payback period for this investment e) Compute the NPV and profitability index if the discount rate is 12.9%