7. [8.50 pts] Chapman Machine Shop is considering a 5 -year project to improve its production efficiency. Buying a new machine press for $675,000 is estimated to result in $190,000 in annual pretax cost savings. The press will be depreciated straight-line to zero over its 5-year life, and it will have a market salvage value at the end of the project of $84,500. The press also requires an initial investment net working capital of $28,600 (this is a one-time reduction). The net working capital will return to its original level when the project ends. The shop's tax rate is 35%. The required rate of return is 11%. a. Estimate the annual depreciation. b. Estimate the annual operating cash flows. c. Estimate the NWC. d. Estimate the after-tax salvage value. e. Make sure to plug in the values in the above table and calculate the annual cash flows for this project. (Table) f. What is the internal rate of return for this project? (Write down the formula and then you may use the financial calculator!) g. Should you buy the machine or not