Question: Mars Inc. is considering a 5-year project that requires a new machine that costs $62,000, and an additional net working capital of $3,000, which will

Mars Inc. is considering a 5-year project that requires a new machine that costs $62,000, and an additional net working capital of $3,000, which will be recovered when the project ends in 5 years. This project would increase the firm's revenues by $30,000 per year and its operating costs by $16,000 per year. Mars will use the 3 year MACRS to depreciate the machine, and it expects to sell the machine at the end of the project for $19,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at year 5 , the final year? MACRS 3-year schedule is as follows: 33%,45%,15%, and 7% for years 1 to 4 , respectively. $24,870$25,250 year MACRS to depreciate the machine, and it expects to sell the machine at the end of the project for $19,000. The firm's marginal tax rate is 31 percent, and the project's cost of capital is 14 percent. What is the net cash flow at year 5 , the final year? MACRS 3-year schedule is as follows: 33%,45%,15%, and 7% for years 1 to 4 . respectively. $24,870 $25,250 $25,770 $26,470 $26,770 $27,110
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