A company is considering the purchase of a new automated assembly machine to increase its production capacity. The initial cost of the machine is $480,000. It is expected to increase the company's annual revenue by $200,000. The annual O&M costs are estimated to be $40,000. The machine's estimated salvage value at the end of its useful life of 4 years is expected be $72,000. This new machine is a MACRS- GDS 3-year property for calculating depreciation deductions. The effective tax rate is 35%. a) (20 points) For this new machine, determine the after-tax cash flow for each year of operation. (Round off values to the nearest dollar)

EOY	BTCF	MACRS-GDS Deduction	Taxable Income	Tax	ATCF
0
1
2
3
4

b) (8 points) If the after-tax MARR is 10% per year compounded annually, compute the PW of the after-tax cash flows. Based on this PW, would you recommend the purchase of this new machine?

No Excel needed. Please show work detail. Thanks.