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  3. please show work and fill out table 6) (28 poi

please show work and fill out table 6) (28 points) A...

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Accounting

please show work and fill out table
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6) (28 points) A company is considering the purchase of a new automated machine to increase its production capacity. The initial cost of the machine is $576,000. It is expected to increase the company's annual revenue by $240,000. The annual O\&M costs are estimated to be $48,000. The machine's estimated salvage value at the end of its useful life of 4 years is expected be $86,400. This new machine is a MACRS-GDS 3-year property for calculating depreciation deductions. The effective tax rate is 35%. a) (20 points) For this new machine, determine the after-tax cash flow for each year of operation. (Round off values to the nearest dollar) \begin{tabular}{|c|l|l|l|l|l|} \hline EOY & BTCF & DeductionMACRS-GDS & IncomeTaxable & Tax & ATCF \\ \hline 0 & & & & & \\ \hline 1 & & & & & \\ \hline 2 & & & & & \\ \hline 3 & & & & & \\ \hline \end{tabular} b) (8 points) If the after-tax MARR is 10% per year compounded annually, compute the PW of the after-tax cash flows. Based on this PW, would you recommend the purchase of this new machine

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