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The Chung Chemical Corporation is considering the purchase of achemical analysis machine. Although the machine being consideredwill result in an increase in earnings before interest and taxes of$35,000 per year, it has a purchase price of $100,000, and it wouldcost an additional $5,000 to properly install the machine. Inaddition, to properly operate the machine, inventory must beincreased by $5,000. This machine has an expected life of 10 years,after which it will have no salvage value. Also, assume that thereis simplified straight-line depreciation and that this machine isbeing depreciated down to zero, a 34 percent marginal tax rate, anda required rate of return of 15 percent.a). What is the initial outlay associated with this project?b). What are the annual after-tax cash flows associated withthis project for years 1 through 9?c).What is the terminal cash flow in year 10 (what is the annualafter-tax cash flow in year 10 plus any additional cash flowsassociated with the termination of the project)?d). Should this machine be purchased?