Questions B, C, D. 83071 is wrong for B.

(Calculating project cash flows and NPV) Raymobile Motors is considering the purchase of a new production machine for $550,000. The purchase of this machine will result in an increase in eamings before interest and taxes of $100,000 per year. To operate this machine properly, workers would have to go through a brief training Session that would cost $22.000 after tak. In addition, it would cost $4,500 after tax to install this machine correctly. Also, because this machine is extremely elicient. Ils purchase would necessitate an increase in inventory of $28,000. This machine has an expected life of 10 years, after which it will have no salvage value. Assume simplified straight line depreciation, that this machine is being depreciated down to zero, a 38 percent marginal tax rate and a required rate of return of 8 percent a. What is the initial outlay associated with this project? b. What are the annual after-tax cash flows associated with this project for years 1 through 97 c. What is the terminal cash now in year 10 (that is, the annual attor tax cash flow in year 10 plus any additional cash flown associated with termination of the project? d. Should this machine be purchased? a. The initial cash outlay associated with this project is $ -604500 (Round to the nearest dollar) b. The annual after-tax cash flows associated with this project for years through are $83071 (Round to the nearest dollar)