AZ Company is considering acquiring a machine that costs $40,000. It is estimated that the machine will generate additional revenues of $20,000 per year for 5 years. The machine will be depreciated over 5 years utilizing the straight line method. AZ faces a 21% average income tax rate and an 8% minimum acceptable return on all investments.

Compute the annual additional revenues after-tax.

Compute the annual depreciation expense.

Compute the tax savings from the annual depreciation expense.

Compute the after tax net present value.