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Use the following to answer the next 2 questions: The Moore Corporation is considering the acquisition of a new machine. The new machine can be purchased for $90,000; it will cost $6,000 to transport to Moore's plant and $9,000 to install. It is estimated that the new machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10 -year life, the new machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labor costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. If the new machine is purchased, an old machine will be sold for $5,000cash. The old machine was originally purchased for $40,000 and has a book value of $8,000. Moore has a tax rate of 40%. 1. What is Moore's net initial investment for the purchase of the new machine? a. $105,000 b. $98,800 c. $101,200 d. $90,000 e. $96,000 2. What is the projected net cash flow for the first year the new machine is in operation? (Assume all sales and expenditures are for cash.) a. $70,400 b. $79,000 c. $68,400 d. $67,200 e. $98,800