Johnson Products is considering purchasing a new milling machine that costs $120,000. The machines installation and shipping costs will total $3,500. If accepted, the milling machine project will require an initial net working capital investment of $20,000. Johnson plans to depreciate the machine on a straight-line basis over a period of 8 years. About a year ago, Johnson paid $6,000 to a consulting firm to conduct a feasibility study of the new milling machine. Johnsons marginal tax rate is 40 percent.

Calculate the projects net investment (NINV). Round your answer to the nearest dollar.

$

Calculate the annual straight-line depreciation for the project. Round your answer to the nearest cent.

$

Calculate MACRS depreciation assuming this is a 7-year class asset. Use Table 9A-3 to answer the question. Round your answers to the nearest dollar.

\begin{tabular}{cc|l|} Year & \multicolumn{3}{c|}{ Depreciation } \\ 1 & $ & \\ 2 & $ & \\ 3 & $ & \\ 4 & $ & \\ 5 & $ & \\ 6 & $ & \\ 7 & $ & \\ 8 & $ & \\ \hline \end{tabular}