(20 pts) Your manufacturing company plans to buy an overhead pulley system. The new system has a purchase price of $240,000, a useful life as well as MACRS recovery period of 5 years, and an estimated salvage value of $14,000. The new system is expected to bring a total annual savings of $115,000 (by reducing the power usage, labor, repair costs, and the number of defective products). The company has a 35% tax rate. The initial investment will be financed with 35% equity and 65% debt. The before-tax debt interest rate is 11% with the loan to be repaid in equal annual installments over the project's lifetime. (a) (14 pts) Determine the after-tax cash flows by preparing the loan repayment (3 pts) and depreciation (2 pts) schedules and then, producing an income statement (4 pts) as well as a cashflow table (5 pts) (Round to the nearest dollar.). (If you use Excel, include clear images of your tables into your answer sheet. Show your calculations explicitly and justify your answers.) Period Net After-Tax Cash Flow 0 $ 1 $ 2 $ 3 4 5 (b) (3 pts) Evaluate this investment project by using an MARR of 20% (if you use Excol or other software, include an image of your solution and mention which function you used.) The present worth of the project is $ (Round to the nearest dollar.) Therefore, the project (1). be accepted on the basis of the PW criterion (c)(3 pts) Evaluate this investment project on the basis of the IRR criterion (If you uso Excel or other software, include an image of your solution and state which function you used.) The internal rate of return is %. (Round to two decimal places.) Therefore, the project (2) be accepted on the basis of the IRR criterion (1) O should O should not (2) should not O should