4. (15 points) The Balas Manufacturing Company is considering buying an overhead pulley system. The new system has a purchase price of $160,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized each year and will increase by 5% for each year of the system's life if the new pulley system is installed. The company's federal tax rate is 21% and state tax rate is 7%. a. Determine the after-tax cash flows. b. Evaluate this investment project by using a MARR of 20%, i.e. NPVL C. Would you recommend this purchase? Why or why not