A toy manufacturer is considering the installation of a new process machine for its toy manufacturing facility. The machine costs $350,000 installed, will generate additional revenues of $120,000 per year, and will save $50,000 per year in labor and material costs. The machine will be financed by a $250,000 bank loan repayable in three equal annual principal installments, plus 9% interest on the outstanding balance. The machine will be depreciated by the 7-year MACRS. The useful life of this process machine is 10 years, at which time it will be sold for $20,000. The combined marginal tax rate is 40% a. Prepare an official cash flow statement to show the year-by-year after-tax cash flow for the project. b. Compute the IRR of this investment. c. At MARR 18%, is this project economically justifiable? A toy manufacturer is considering the installation of a new process machine for its toy manufacturing facility. The machine costs $350,000 installed, will generate additional revenues of $120,000 per year, and will save $50,000 per year in labor and material costs. The machine will be financed by a $250,000 bank loan repayable in three equal annual principal installments, plus 9% interest on the outstanding balance. The machine will be depreciated by the 7-year MACRS. The useful life of this process machine is 10 years, at which time it will be sold for $20,000. The combined marginal tax rate is 40% a. Prepare an official cash flow statement to show the year-by-year after-tax cash flow for the project. b. Compute the IRR of this investment. c. At MARR 18%, is this project economically justifiable