- Insert Row 2. Delete Row CUCK HERE TO SAVE YOUR WORK C17 Enter cash outflows as negative numbers. C D A B E F G G H NH 1 2 3 4 5 Gemini Corp is considering the purchase of a new machine for $325,000 The firm's old machine has a book value of $54,000 but can be sold today for $22,000. The new machine will be subject to a CCA rate of 25 percent. It is expected to save an annual cash flow of $72,000 per year for 7 years through reduced fuel and maintenance expenses. The company will need to invest $14,000 in spare parts inventory (working capital) when they purchase the machine At the end of the 7 years the company believes it can sell the machine for $20,000. Gemini Corp has a 12 percent cost of capital and a 40 percent tax rate (lanore any gain/loss on any sale of 6 7 8 9 10 11 12 13 14 15 16 17 18 Required: A Complete the following table by entering the present value, after-tax, of each of the following cash flows , . , . , . 19 quired: A Complete the following table by entering the present value, after-t following cash flows. . , . . . Description Initial investment Trade-in Expense savings Salvage CCA tax shield VOTRING capital et or Net Present Value Present Value, after tax $ (300 000) 26 000 223,624 13,570 677,714 6,333 $ 647 241 (5) . Should Aries Electronics Inc. purchase the machine? Yes, the net presnet value is postive