Catalyst Ltd. is considering the purchase of a new machine which is expected to increase the sales by $120,000 in addition to increasing non-depreciation expenses by $ 65,000 annually. Due to the sales increase, Catalyst Ltd expects its working capital to increase $ 12,500 during the life of the project. Catalyst Ltd will depreciate the machine using the straight-line method over the project's five years life to a salvage value of zero. The machine's purchase price is $ 180,000 . The firm has a marginal tax rate of 35 percent and its required rate of return is 12 percent.

a) The machine's initial cash outflow is : ___________________________________________

b) The machine's incremental after-tax cash inflow is : _______________________________

c) The machine's after-tax incremental cash flow in year five is : _______________________

d) The machine's NPV is : ________________________________________________________