Question: C Home 8. Snapdragon Co. is evaluating the possible acquisition of a new machine. The new machine will cost $2.950,000. Freight and installation necessary to

 C Home 8. Snapdragon Co. is evaluating the possible acquisition of

C Home 8. Snapdragon Co. is evaluating the possible acquisition of a new machine. The new machine will cost $2.950,000. Freight and installation necessary to put the machine in service will cost $250,000. The firm expects that, due to increased sales, inventory and accounts receivable will increase by $300,000 and $200,000, respectively. Accounts payable are expected to increase by $350,000. What is the Snapdragon's initial outlay for this project? a. $2,845,000 b. $3,350,000 C. $3.452.000 d. $3,548,000 e. none of the above Question 9 10 pts 9. Martin Corporation is considering the purchase of a new machine that will cost $100,000. The firm would depreciate the machine using the straight-line method over a period of 5 years to a salvage value of zero. However, the firm expects to sell the machine after 4 years and believes that it could get $12,000 for the machine at this time. If the firm's marginal tax rate is 40%, what is the terminal cash flow associated with this project? a. $13,200 b. $12.000 c. $15.200 d. $17,000 e, none of the above

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