A company has bought a new machine with the life time of 3 years for a total cost of $180,000. Initial investment is borrowed at 10% per year with repayment of an equal uniform amounts at the end of each year in 2 years. The machine generates total income of $150,000 per year and incurred operating expense of $60,000 per year. The company uses MACRS depreciation and its marginal tax rate is 40%. The machine is sold at the end of the third year for a total of $75,000. What will be the size of each payment for the $ 180,000 debt? How much of each payment is interest and how much of each payment is principal (i.e., towards the $180,000 debt)? What will be the depreciation amount and book value for this investment for years 1 through 3 using the MACRS Depreciation method? B = Assuming a 40% effective tax rate and MACRS depreciation, tabulate the cash flows after tax (CFAT). Show at least one calculation for CFBT, TI, T and CFAT. End of Life/disposal analysis at t = DR = CG = CL = What is the present worth of these cash flows given that MARR is 10%? Is this a good investment