Holland Systems wants to purchase a computerized design device. The tax rate is 40%. Cost of capital is 10%. To support the new equipment, working capital needs to rise $10,000. The new piece of equipment will cost $200,000. It also has a 5-year MACRS life. Assume the new equipment would provide the following stream of added cost savings for the next 6 years of its economic life. The new machine's salvage value will be zero. New Dep. Schedule Year Cost Savings $ 200,000 Basis 1 $80,000 $40,000 2 $66,000 2 $64.000 3 $64,000 3 $38,000 4 $60,000 $24,000 5 $56,000 5 $22.000 6 $42,000 6 $12,000 1 4 A. If the new machine is purchased, what is the amount of the initial cash flow at year 0? (CF) B. What incremental operating cash flows will occur at the end of years 1 through 6? 12 points OCF1 OCF2 OCF3 OCF OCFS OCF F. What is the total cash flow that will occur at the end of year 6 if the new machine is purchased? G. What is the NPV of this project? Should Holland buy the new machine? Explain answer and show calculator inputs