5) (35 points) Because of high operating and maintenance costs, a company is considering a replacement for an aging machine that has been fully depreciated for tax purposes. The new machine will have an initial cost of $50,000 and is expected to generate an annual savings of $10,000 in operating and maintenance costs. Its estimated salvage value at the end of its useful life of 4 years will be $20,000. The new machine is a MACRS- GDS 3-year property for calculating depreciation deductions. The effective tax rate is 40%. Use an after-tax MARR of 10% per year compounded annually. a) (25 points) For this new machine, determine the after-tax cash flow for each year of operation. EOY BTCE MACRS-GDS Taxable Income Tax ATCF 4 b) (10 points) Use present worth analysis to determine if the company should replace the existing machine