7) (35 points) MK Industries is considering an investment in a new assembly equipment to generate additional revenue. For this new investment, the following data apply: Purchase price =$1,125,000{$450,000 from company funds and $675,000 from a loan } Useful Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $112,500 Effective tax rate: 35% Estimated annual O\&M costs: $60,000. Estimated new annual revenue: $450=,000 Conditions on loan: Nominal annual rate of 5% per year compounded annually. The loan is to be repaid over 3 years with equal annual payments. a) (10 points) Loan calculations - principal and interest payments. (Round off values to the nearest dollar) b) (25 points) Find the ATCF for each year of this investment (Round off values to the nearest dollar). Use the template available in the Handouts/Notes module in Canvas