2) You are considering an investment in a new machine. The firm's tax rate is 30%. Answer this question in Excel. Please highlight or circle your answers. The machine is expected to have the following: Year Change in Revenue Change in Expenses Change in Depreciation 0 1 0 +20,000 +20,000 +20,000 +30,000 +30,000 0 +5,000 +5,000 +5,000 +5,000 +6,000 2 3 Change in Net Working Capital +20,000 +2,000 +2,000 -5,000 +2,000 -21,000 0 15,000 15,000 15,000 +20,000 +20,000 Change in Capital Spending +100,000 0 0 -15,000 0 -20,000 4 5 a) What is the expected incremental cash flow each year for this new machine? b) Should you approve this project? Why or why not? 3) You are evaluating two different aluminum milling machines. The Aluminal costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Alumina Il costs $420,000, has a five-year life, and has pretax operating costs of $36,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $40,000. If your tax rate is 35 percent and your discount rate is 10 percent, which do you prefer? Why? Answer this question using Microsoft Excel. Mark the key equations and write them out