Question: Please Show work and Do the chart as shown- thank you DISCUSS QUESTION #4 (Refer to Handouts for Chapter 12 posted in Content) The Clouse

Please Show work and Do the chart as shown- thank you DISCUSSPlease Show work and Do the chart as shown- thank you

DISCUSS QUESTION #4 (Refer to Handouts for Chapter 12 posted in Content) The Clouse Company is evaluating the proposed acquisition of a new milling machine. The machine's price is $180,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $50,000. The machine would require an increase in net working capital of $7,000 The milling machine would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. Clouse's marginal tax rate is 30% RIMA uestion 4 COMPLETE THE FOLLOWING CHART YEAR CASH FLOW Initial Cost Change NWC Operating Cash Flows After Tax Salvage Value 2 CASH FLOW er YEAR DISCUSS QUESTION #4 (Refer to Handouts for Chapter 12 posted in Content) The Clouse Company is evaluating the proposed acquisition of a new milling machine. The machine's price is $180,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $50,000. The machine would require an increase in net working capital of $7,000 The milling machine would have no effect on revenues, but it is expected to save the firm $50,000 per year in before-tax operating costs, mainly labor. Clouse's marginal tax rate is 30% RIMA uestion 4 COMPLETE THE FOLLOWING CHART YEAR CASH FLOW Initial Cost Change NWC Operating Cash Flows After Tax Salvage Value 2 CASH FLOW er YEAR

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