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MBA Corp is considering whether to expand widget production.This would require the purchase of a new widget-producing machineat a cost of $5,400,000. The machine would produce 450,000 widgetsper year during its useful life of three years, and would bedepreciated for tax purposes at a rate of $1,800,000 per year. Themachine would not have any salvage value. Expanding widgetproduction would also require the use of a building that couldotherwise be leased for $500,000 per year. Working capital requiredfor the new machine would be 12% of the next year’s sales. Widgetprices are $20 and are expected to remain stable. The materials andlabor required to produce a widget cost $12, and these costs arealso expected to remain stable. The corporate income tax rate is30%. The discount rate is 6% per year. (a) Forecast the incrementalcash flows resulting from the purchase of a widget machine on ayear-by-year basis and draw them on a timeline. (b) Decide whetherMBA Corp should go ahead with the purchase of the new machine.show calculations work and calculator strokes