Question: need both answersd with explaination on how to do them You are considering the purchase of a new machine that will cost $200,000 and be

need both answersd with explaination on how to do them need both answersd with explaination on how to do them You are

You are considering the purchase of a new machine that will cost $200,000 and be depreciated over five years using straight-line depreciation. You expect that it will require $20,000 per year in annual maintenance, and that you will need to purchase $10,000 in spare parts at the time you purchase the machine. You will maintain a steady inventory of spare parts until you sell off the machine in four years for $32,000, at which time your inventory of spare parts will be zero. You also expect that you will need to spend $4,000 in initial training for your employees on how to use the machine most effectively. If your tax rate is 25%, and your WACC is 10%, please answer the following questions. Question 1 1 pts What is the net salvage value of your machine in four years? $32,000 $42.000 O $40,000 $34.000 Question 2 1 pts What is the operating cash flow created each year by purchasing this machine? -$5,000 $20,000 -$45.000 -$60,000

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