Question: Show all work please! [5] (20pts) The Aggie machine shop is evaluating a proposed acquisition of a new 3-D printer. The 3-D printer costs $150,000

Show all work please!

Show all work please! [5] (20pts) The Aggie machine shop is evaluating

[5] (20pts) The Aggie machine shop is evaluating a proposed acquisition of a new 3-D printer. The 3-D printer costs $150,000 and requires another $12,000 in setup and calibrations. The 3-D printer has an expected service life of 5 years but falls into the MACRS 7-year class for depreciation purposes. After 5 years the salvage value is estimated at $45,000. With the 3-D printer online annual revenues are estimated at $175,000. Annual expenses are estimated at $60,000 in labor, $20,000 in material, and $10,000 in overhead. The CEO has authorized $35,000 in working capital which is to be recovered at the end of the 5th year. The CFO has set the firm's MARR at 17% (after tax) and the tax rate for the firm is set at 30%. Find the following (a) draw the before tax cash flow (b) fill in the missing values of the table below: Income statement End of year 0 1 2 3 4 5 Revenues 175,000 175,000 175,000 175,000 175,000 Expenses: Labor 60,000 60,000 60,000 60,000 60,000 Materials 20,000 20,000 20,000 20,000 20,000 Overhead 10,000 10,000 10,000 10,000 10,000 Depreciation 23,143 39,673 28,338 ? Taxable income 61,857 45,327 56,662 ? (c) draw the after tax cash flow (Show ALL the necessary calculation)

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