3. After-tax CF from Salvage: If you paid $98,000 for some machinery that was depreciated using the 5-year MACRS table, and you sold the machinery for $15,000 at the end of year 6 , what would be the after-tax cash flow from salvage if your company is in a 35% tax bracket? 4. Create a pro-forma income statement, and enter the Year 5 net income: Your company is currently considering the purchase of a new production machine at a cost of $55,000 (including installation costs) and expects to increase revenues by the following amounts each year as a result of the new equipment: Year1=$19,000Year2=$28,000Year3=$30,000Year4=$35,000Year5=$15,000Year6=$10,000 Fixed costs for running the new equipment will be $5,000 per year, while variable costs will be 15% of sales. The assets depreciate according to the 5 -year MACRS table. The company is not currently paying any interest expense, and they are taxed at 31% of EBIT. 5. Operating cash flows: Refer back to the data you received in problem \#4. After you have calculated the Net Income, calculate the Operating Cash Flows (OCF's) and enter the year 3 OCF: 6. Startup or initial costs (Year 0 costs): Continuing with the problem and data in \#4 above, if the company paid $52,000 for the equipment, $3,000 for installation costs, and $8,000 for an increase in net working capital (mainly increase raw materials inventory to support the added machinery), calculate the initial year's total cash outflow