THIS PROBLEM HAS 25 SPOTSTO FILL IN ANSWER. EACH ANSWER WILL BE WORTH 1POINT. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) MJ Company is considering investing in a machine to produce personalized golf balls. The company hired outside analysts to conduct a thorough analysis of the project's feasibility. Regardless of whether or not the golf ball production proceeds, the company must pay the analysts $100,000. Following are the analysis for the proposed new product: e The golf balls would be manufactured in a building owned by the firm that was already purchased couple years ago. The building can be sold for $140,000 after taxes. o Cost of new machine is $150,000, 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 $40,000. Production by year during the five-year life of the machine is expected to be : 60,000 units, 80,000 units, 100,000 units, 120,000 units, and 90,000 units o The price of the personalized golf balls in the first year will be $4 per unit, and will increase at 2% per year. o On the other hand, the cost to produce these golf balls in the first year will be $2.5 per unit, and will increase at 8% per year. The project initially requires $100,000 of net working capital that will be fully recovered at the end of the project. 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 2 3 4 SALES REVENUE $ type your answer... $ solve on your own $ solve on your own $ solve on your own $ solve on your own OPERATING COSTS $ type your answer... $ solve on your own $ solve onyour own $ solve on your own $ solve on your own $ 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 $ NET INCOME T $ solve on your own $ solve onyour own $ solve on your own $ solve onyour own $ $ $ $ $ QEF= 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 5 $ $ CAPITAL SPENDING type your answer. type your answe $ $ OPPORTUNITY COSTS type your answer, type your answe $ $ NET WORKING CAPITAL type your answer. type your answe $ $ $ $ $ $ PROJECTED TOTAL CF type your answer. type your answer... type your answ type your answe type your answer... type your answe QUESTION #4. What is the Net Present Value of the project if the discount rate is 15%? ANSWER : NPV is approximately -$20,100 v QUESTION #5. What is the Internal Rate of Return (IRR) for this project? ANSWER: 19.28% v