1. Certain new machinery, when placed in service, is estimated to cost $180,000. It is expected to reduce net annual operating expenses by $36,000 per year for 10 years and to have a $30,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate is 6%. State income taxes are deductible from federal taxable income. Suppose the machinery had been classified in the 10-year MACRS (GDS) property class. Calculate the new after-tax PW and after-tax IRR. (show the complete cash-flow diagram.)