sign. (e.g.-12,333.00). But do not round intermediate calculations . DO NOT PUT UNITS such as $ sign. JUST WRITE DOWN THE NUMBERS WITH COMMAS AND 2 DECIMAL PLACES CHE Company is considering investing in a machine to produce personalized tennis rackets. The company hired outside analysts to conduct a thorough analysis of the project's feasibility. Regardless of whether or not the tennis rackets production proceeds, the company must pay the analysts $250,000. Following are the analysis for the proposed new product: e The tennis rackets would be manufactured in a building owned by the firm that was already purchased couple years ago. The building can be sold for $220,000 after taxes. e Cost of new machine is $270,000, which will be depreciated using 5-year MACRS for tax purposes. The machine has an estimated market value at the end of five years of $140,000. e Production by year during the five-year life of the machine is expected to be : 3,000 units, 5,000 units, 10,000 units, 8,000 units, and 9,000 units o The price of the personalized tennis rackets in the first year will be $100 per unit, and will increase at 3% per year. o Onthe other hand, the cost to produce these rackets in the first year will be $55 per unit, and will increase at 7% per year. o The project initially requires $300,000 of net working capital that will be fully recovered at the end of the project. e The corporate tax rate is 21%. QUESTION #1. What is the after-tax salvage value? ANSWER : $ type your answer... QUESTION #2. Fill in the blank below to find the operating cash flow (OCF). Note that you need to fill in the blank on your own in years 2, 3, 4, and 5 (even though it is not graded in this quiz) to find the OCF each year. YEAR 1 2 3 4 5 $ SALES REVENUE $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answer... $ OPERATING COSTS $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answer... $ DEPRECIATION $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answer... $ TAX (0.21) $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answer... to NET INCOME $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answer... $ $ $ $ to OCF= type your answer... type your answer... type your answer... type your answer... type your answer...QUESTION #3. Fill in the blank below to find the projected Total Cash Flow each year. YEAR 0 1 2 3 4 CAPITAL SPENDING type your answ type your answe $ $ OPPORTUNITY COSTS type your answ type your answe $ $ NET WORKING CAPITAL type your answ type your answe $ $ PROJECTED TOTAL CF type your answ $ solve on your own $ solve on your own $ solve on your own $ solve on your own type your answe QUESTION #4. What is the Net Present Value of the project if the discount rate is 20%? ANSWER : NPV is approximately choose your answer...QUESTION #4. What is the Net Present Value of the project if the discount rate is 20%? ANSWER : NPV is approximately choose your answer... choose your answer... -$42,500 -$250,580 $105,830 $149,270