Old Machine: - Was bought 3 years ago for $50,000 - Is being depreciated with $0 salvage value over 10 years straight line - This machine can be sold for $30,000 today New Machine - $70,000 - Will be depreciated over 7-year life with a $7000 salvage value (straight line depreciation) Other Facts - The new machine will add $5000 in revenue each year - It will provide cost savings of $3000 each year - Working Capital of $5000 more will be needed at the beginning of the project (year 0 ) - Tax Rate =40% A. The initial investment (t=0) relevant to this project is B. The after-tax operating cash flows (t=17) for each year is C. The terminal value of the project is