The following problem will be used to answer the next question. Elsinore Company is considering the...

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The following problem will be used to answer the next question. Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 3-year class. The equipment has an estimated life of 4 years, it costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the fourth year for $10,000. The new brewing equipment is expected to generate new sales of $40,000 per year and the firm will face additional costs of $3,000 per year as well. In addition, the company will need to increase accruals by $5,000 and accounts receivable will also increase by $5,000. The company's tax rate is 20 percent. (Numbers in parentheses are negative) What would be the cash flow from assets (CFFA) at t=0? MACRS Class Year 1 3yr 5yr 33.33% 20.00% 14.29% 7yr 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 7 ($105,000) ($100,000) ($110,000) 11.52% 8.93% 5.76% 8.92% 8.93% 4.46% The following problem will be used to answer the next question. Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 3-year class. The equipment has an estimated life of 4 years, it costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the fourth year for $10,000. The new brewing equipment is expected to generate new sales of $40,000 per year and the firm will face additional costs of $3,000 per year as well. In addition, the company will need to increase accruals by $5,000 and accounts receivable will also increase by $5,000. The company's tax rate is 20 percent. (Numbers in parentheses are negative) What would be the cash flow from assets (CFFA) at t=0? MACRS Class Year 1 3yr 5yr 33.33% 20.00% 14.29% 7yr 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 7 ($105,000) ($100,000) ($110,000) 11.52% 8.93% 5.76% 8.92% 8.93% 4.46%