4. Assume that the combined federal and state income tax rate for Botanic Company is 35%. Requirements 1. The book value of an old machine is $100,000. Botanic sold the machine for $55,000 cash. What is the effect of this decision on after-tax cash flows? 2. The book value of an old machine is $100,000. Botanic sold the machine for $120,000 cash. What is the effect of this decision on after-tax cash flows? Requirement 1 and 2. What is the effect of each decision on the company's after-tax cash flows? Begin by selecting the labels needed to calculate the after-tax cash flows for requirement 1 and 2, and then enter the amounts to determine the after-tax effect on cash for each requirement. (Use parentheses or a minus sign for a loss on sale and tax payment on gain.) Requirement 1 Requirement 2 Sales proceeds of Sales proceeds of $55,000 $120,000 (1) (2) Pre-tax gain (loss) on sale (3) Net cash inflow from sale (2) (3) (1) O O Book value of asset sold O Cash proceeds of sale Tax savings / tax paid O Book value of asset sold O Cash proceeds of sale Tax savings / tax paid O Book value of asset sold O Cash proceeds of sale Tax savings / tax paid