AIR SUPPLY Air Supply Ltd. is considering acquiring a machine with an initial cost of $52,500. It is estimated that the machine will increase revenues by $10,000 annually. The machine has a 10 year estimated life. Air Supply Ltd. utilizes straight line depreciation and faces a 20% income tax rate. Compute the additional revenues after-tax. Compute the annual depreciation expense. Compute the tax savings from depreciation. Assuming a 10% minimum acceptable return, compute the after-tax net present value. Is the machine an acceptable investment? Why or why not?