It costs $$83,000$ to purchase and install a new machine that will let the company cut costs for $6$ years. The machine will be depreciated linearly to zero over $10$ years, and can be sold for $$12,450$ after $6$ years. 

  

 Every year starting right now, the project requires an investment of $$5,000$ for net working capital. After $6$ years, the stock of net working capital will be recouped. 

 

The marginal tax rate is $35\%$ and the required return is $14\%.$ 

 

a. What is the after$-$tax salvage value of the machine in year $6?$

b. What is the present value of operating cash flows to break even?

c. At what level of annual operating cash flows $($OCF$)$ does the project break even?

d. At what level of annual cost savings does the project break even?