Haral, Ank Question 3 (10%) Watangki Work Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $400,000 is estimated to result in $100,000 in annual pre-tax cost savings. Watanobbi uses the diminishing value method for depreciation, and the rate for tax purposes is 35%. The machine press will have a salvage value at the end of the project of $75,000. The press also requires an initial investment in spare parts inventory of $15,000, along with an additional $2,200 in inventory for year 1, $2,400 for year 2 and $2,600 for year 3 of the project. If Watanobbi's tax rate is 30% and its discount rate is 12%, should Watanobbi buy and install the machine press? Complete the table below: Cost of new machine Total Cashflow at t-0 (0.5% Depreciation at t=1 (0.5%) Total Cashflow at t=1 (0.5%) Depreciation at t=2 (0.5%) Total Cashflow at t2 (0.5%) Depreciation at t=3 (0.5%) Total Cashflow at t-3 (0.5%) Depreciation at t-4 (0.5%) Total Cashflow at t-4 (0.5%) Book Value at t-4 (0.5%) After Tax Salvage Value at t=5 (1%) OCF at t-1 (0.5%) NPV of the Project (1%) OCF at t=2 (0.5%) OCF at 133 (0.5%) Decision (1%) OCF at 1-4 (0.5%)