A corporation is considering purchasing a machine that will save $200,000 per year before taxes. The cost of operating the machine, including maintenances, is $80,000 per year. The machine costing $150,000 will be needed for five years, after which it will have a salvage value of $25,000. A full 100% bonus depreciation will be claimed on this asset. If the firm wants 15% rate of return after taxes, what is the net present value of the cash flow generated from the machine? The firm s tax rate is 25%. What is the internal rate of return? (Note: You need to develop an income statement and a cash flow statement first.)