Please write all your steps regarding each calculation. Also, refer to the formula sheet; if any formula is used, please label it. Anyways thank you, and I will rate it after completion.

A company is considering the acquisition of a new machine for $140000. Because of a rapid change in technology , the need for this machine is expected to last only 2 years. At this time, the machine will have salvage value of $60000. Year 1 Year 2 Yearly maintenance cost $ 10400 $10816 Yearly labor cost $5200 $5408 Annual revenues $67600 $70304 The company has only $50000 availiable for this investment and must borrow the additional $ 90000 at a market interest rate of 10% per year. The loan will be paid in two equal payments. The income tax rate is 40%, the after tax real MARR is 7.70% and the expected inflation rate is 4% per year over the next 2 years. The CCA rate for the machine is 30%. All dollar figures in constants dollars. What is the net cash flow at time 0? (a) - $140000 (6) - $50000 (c) $50000 (d) $90000 What MARR value do you need to use to evaluate this project once you have the net cash flow? (a) %10.00 (6) %4.00 (c) %12.00 (d) % 7.70 List of Equations: M r = 1+ -1 . i=11+ - 1 (A/F, i, N) = - [4+:-) (F/A, i, N) = (NP, i, N)= (P/A,1,N) = (1+i) - 1 i(1+i) i(1+i) (1+i) - 1 (1+i)* - iN-1 i? (1+i) (P/G,,N)= [(1+i)" - iN - 1 (A/G,i, N)= i[(1+i)" - 11 1-(1+3) *(1+i) "V (P/A,g, i, N)= if itg N (P/A,g, i, N)= ifiy PW = CE = i (1+i) CR(i)= (P-SXA/P, i, N) + is B, = A(P/A,1,N-n) In = (B1-1) *i = A(P/A,1,N-n+1)*i PP, = A(P/F,1,N-n+1) P-S P-S Ds/(n)= BVs/(n)=P-n N N BV(n)= P(1-4) Dav(n)=dP(1-d)-1 CCA = P(d/2) CC4, - - 1-2) fora for n>2 G=1* (Udisposal - S) G = L*(Udisposal - P) - tcG+(S-P) for n>1 i=i' +f+i'#f (1-d)! (i-1) i'= (1+1 11 MARRA = MARRR + f + MARRR #f