4. Specialty Machining, Inc., is evaluating taking on a new product which would require purchasing a new multi-axis CNC machining center. The machine would cost $575,000. Operating labor and other costs are estimated at $70,000 per year. Profit from the additional sales of the new product is estimated at $290,000 per year. The machine would be depreciated on the MACRS 7-year schedule. The projected life cycle of the new product is four years. The machine would be sold at that point; forecast residual value of the machine is $200,000. (a) Find the rate of return on the project, and the after tax payback period. (b) Based on a MARR of 20%, is this a desirable investment?