4) (25 POINTS) Forest Products, Inc. is contemplating buying a warehouse for $500,000 The company can either buy the warehouse for cash, or pay a $200,000 down payment in cash, and take out a $300,000 loan at a 10% annual interest rate. The loan will be paid back over three years, with equal payments every year (payable at the end of each year). The company's tax rate is 40%. (a) (10 POINTS) Calculate the after-tax cash flows for the loan option, using the following table. (You do not need to account for tax savings from depreciation, since that would be the same regardless of whether the company paid cash or took out a loan.) Year Down Payment Principal Interest Cash Flow before Tax Taxes (or Tax Savings) Cash Flow after Tax 0 1 2. 3 (b) (5 POINTS) Explain how you would calculate the cost of money freed up by taking out the loan. (You don't need to actually do the calculations.)