1) Two machines A and B are being considered for purchase Machine A 10,000 1,000 $4,000 EOY1 increasing 5% each year thereafter 4 vears $1,000 MACRS GDS over 3 vears Machine B $12,500 $1,500 $6,000 EOY 1 increasing by 500 each year Initial Purchase Cost of installation Net Revenue Useful life Market Value at end of useful life Depreciation Method raw the cash flow diagrams for both Machine A and Machine B 4 years $2,000 MACRS GDS over 5 vears Complete the tables below to show the after-tax cash flows for Machine A and Machine B. The incremental federal tax rate is 34% and the state tax rate is 7%. Before tax MARR is 25%. Machine A End of Year BTCF Depreciation Taxable Income Income Tax ATCF 0 4 4 Machine B End of Year BTCF Depreciation Taxable Income Income Tax ATCF 0 4 4 Based on your ATCF which machine would you recommend and why? 1) Two machines A and B are being considered for purchase Machine A 10,000 1,000 $4,000 EOY1 increasing 5% each year thereafter 4 vears $1,000 MACRS GDS over 3 vears Machine B $12,500 $1,500 $6,000 EOY 1 increasing by 500 each year Initial Purchase Cost of installation Net Revenue Useful life Market Value at end of useful life Depreciation Method raw the cash flow diagrams for both Machine A and Machine B 4 years $2,000 MACRS GDS over 5 vears Complete the tables below to show the after-tax cash flows for Machine A and Machine B. The incremental federal tax rate is 34% and the state tax rate is 7%. Before tax MARR is 25%. Machine A End of Year BTCF Depreciation Taxable Income Income Tax ATCF 0 4 4 Machine B End of Year BTCF Depreciation Taxable Income Income Tax ATCF 0 4 4 Based on your ATCF which machine would you recommend and why