2. The plant has accumulated savings of $60,000 to acquire a new machine for quality assurance of its products. The new quality control machine cost $90,000. There are an extra of $1,800 in operation and maintenance expenses. The income federal income tax rate is 0.38 and the state tax is 8%. The new equipment will save $35,000 each year and its economic life is 3 years. The salvage value is $30,000. Does the acquisition of this new machine satisfy the 6% minimum rate? Compute the after tax rate of return of this alternative for year two. Solve this problem using the straight line and the MACRS depreciation methods. Which depreciation method is best for year two? 2. The plant has accumulated savings of $60,000 to acquire a new machine for quality assurance of its products. The new quality control machine cost $90,000. There are an extra of $1,800 in operation and maintenance expenses. The income federal income tax rate is 0.38 and the state tax is 8%. The new equipment will save $35,000 each year and its economic life is 3 years. The salvage value is $30,000. Does the acquisition of this new machine satisfy the 6% minimum rate? Compute the after tax rate of return of this alternative for year two. Solve this problem using the straight line and the MACRS depreciation methods. Which depreciation method is best for year two