Assume that you will buy and operate a piece of equipment. The machine costs $425,000. Vou estimate that the equipment will generate $100,000 revenue, each year for eight years. You also estimate that operating costs for the machine will be $25,000 each year for eight years. There will be a one-time repair costat the end of year four, estimated at $50,000. The salvage value = $100,000. Allestimates are in constant 2021 dollars. The inflation rate for revenues is estimated to be 2.5%. The Inflation rate for operating costs and repairs is estimated to be 3.5%. You will depreciate the machine using the MACRS method, and the 7-year category. Assume that negative taxable amounts are allowed. Inflated values begin with period one. The federal tax rate= 21% 1. Determine the after tax cash flow, in actual $. 2. Determine the book value of the machine for each year, 3. Determine the NPW of the actual dollar, after-tax cash flow, if the MARA+12%. Before Tax After Tax Cash Operating Revenues Cash Flow Taxable Cash Flow Year Costs MACRS Depreciation Amount (de) Book Value Tax Actuals Flow Actual Actual dctuals 0 NA NA NA NA NA NA 1 4 6 7 8 MACRS Table Year 3-Year 5-Year 7-Year 1 33.33 20 14.29 2 44.45 32 24.49 3 14.81 19.2 17.49 4 7.41 11.52 12.49 5 11.52 8.93 6 5.76 8.92 7 8.93 00 4.46