Question: Question 35 points ABC Machine Shop is considering a 5 year project to improve its production efficiency. Buying a new machine press for $570,000 is

Question 35 points ABC Machine Shop is considering a 5 year project to improve its production efficiency. Buying a new machine press for $570,000 is estimated to result in 190.000 napretax cost saving 100 DOO increase $25,000 in inventory, increase 40,000 in account receivables, and increase $15.000 in notes payable. The press falls in the MACRS 5 year class 0.20 0.20 192.0.1152.0.1152.0007 and it with savage value at the end of the project of $85.000 The shop's tax rate is 35 percent and its discount rate is 11 percent What is the terminal cash flow in year 2 5251,3235 5193.350.4 $363.1233 5.263.223.8 $163.400.5

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