5A.XYZ, Co. is considering the purchase of a new building that will allow them to expand their market.They plan to pay for the investment with a bank loan.The interest payments on the loan will be $140,000 per year.How will this be treated in the cash flows for capital budgeting?

5B.Compare the tax treatment of the purchase of a capital asset, such as a machine, with the tax treatment of an expense such as labor costs.