1) A manufacturer of chemical products is considering the purchase of one of two machines Initial Purchase Cost of installation Net Cash Flow, Before Tax Machine A $15,000 $5,000 $9,000 EOY 1, and increasing by $1,000 each year thereafter 4 years $5,000 Machine B $12,000 $4.000 $3,000 EOY 1, increasing 5% each year thereafter Useful life Market Value at end of useful life 4 years $3,000 3. Complete the tables below to show the after-tax cash flows for Machine A and Machine & The company's federal rate is 21% and its state tax rate is 6% MARR before tax is 35%. Depreciation recapture is taxed at the same effective rate as income. Do all your calculations without using Excel Machine A End of Year BTCF Depreciation Taxable income income Tax ATOS 1 2 3 4 4 Machine B BTCE End of Year Depreciation ATCS Income Tax 0 1 3 4 1