Support your answer. The input in the box below will not be graded, but may be reviewed and considered by your instructor. In general, how would each of the following factors affect the investment decision, and how should each be treated? 1. The expected life of the existing machine decreases.

2. The WACC is not constant, but is increasing as Bigbee adds more projects into its capital budget for the year.

$125,000 per year, using the straight-line method. ealized if the new machine is installed. The company's marginal tax rate is 35%, and it has a 12% WACC. a. What initial cash outlay is required for the new machine? Round your answer to the nearest dollar. Negative amount should be indicated by a minus sign. $ Year Depreciation Depreciation Change in c. What are the incremental net cash flows in Years 1 through 5 ? Round your answers to the nearest dollar. d. Should the firm purchase the new machine