Moscow Metals is considering installing a new moldinf machine which is expected to produce operating cash flows of $73,000 a year for 7 years...

Each question is worth 25 points. The total point for this assignment is 100 points. You should show your work processes and upload your response to the course Canvas website. (You can upload the excel spreadsheet.) 1. Moscow Metals is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years. At the beginning of the project, inventory will decrease by $16,000, accounts receivables will increase by $21,000, and accounts payable will increase by $15,000. All net working capital will be recovered at the end of the project. The initial cost of the molding machine is $249,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $48,000 aftertax cash flow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 14.5 percent