A new machine for Volusia Shipyards will cost $342,000 (including shipping and installation) and have an estimated life of 7 years, though you only need the machine for an estimated 4 years, at which point Volusia can sell the machine for $95,000. The new machine will allow additional sales of 1,800 units per year at $190 sales price per unit (in year 1) with costs of $95 per unit (in year 1). These amounts will increase by an expected 3% inflation rate, annually. The new machine will be depreciated over the 3-year MACRS recovery period. Use the (slightly simplified) depreciation rates of 33% for year 1, 45% for year 2, 15% for year 3, and the remainder for year 4. This project will require NWCs of 10% of the following year’s projected sales (e.g., NWC today would be 10% of year 1’s sales). NWC increases may be ‘recovered’ at the end of the project. The applicable corporate tax rate is 22%, and the project cost of capital is 13%. What is the NPV of Volusia acquiring the new machine? Should they do so? (14) 9. Think of the traditional, basic income statement structure...i.e.., a) sales is the top line, then we have b) cost of goods sold and c) SG&A expenses deducted in order to calculate an operating income (EBIT). Then d) we consider interest-bearing debt’s expense and finally e) taxes in order to calculate a final value of f) net income. For each of the items above (a-f) tell me which of the following parties either provides and which receives the item (and whether they provide it or receive it). Here is the list: Debt holders, customers, stock holders, government, employees, suppliers. Put another way...for each of the above, tell me whether the item (a-f) is an inflow FROM the party to the firm or TO the party from the firm