You are evaluating a project for The Dogs, that involves the purchase of a new dog biscuit making machine. The project has a three year lffe and you estimate the project will increase revenues by $173,000 and will increase costs by $22,000 each year, The project requires an initial investment of $120,000 which is depreciated on a straight-line basis to zero over the 3 year project life. The machine will be sold ot the end of the project for $35,000. The initial not working capital investment required for this project is $22,000 which will be recovered at the end of the project's life. The tax rate is 25% and the required retum on the project is 10%. What is the intial cash outflow for this project? Mutiple Choice 112,000 $90000 $98,000 $142.000 You are evaluating a project for The Dogs, that involves the purchase of a new dog biscuit making machine. The project has a three year life and you estimate the project will increase revenues by $173,000 and waking increase costs by $22,000 each year, The project requires an initial investment of $120,000 which is depreciated on a straight-tine basis to zero over the 3 year project life. The machine will be sold at the end of the project for $35,000. The initial net working capital investment required for this project is $2,2,000 which will be recovered at the end of the project's ife. The tax rate is 25% and the required return on the project is 10% What is the total cash flow for the project in year 3 ? Muitiple Choike $149,500 $123,250 5145,250 571500