im not sure this is whats the question is as it is.

Engr Econ Assignment- Capital Budgeting metrics with pre-tax and after-tax cash flows. Pluskwik Manufacturing is considering purchasing a new production machine. The equipment will cost $150,000 and have a 3-year useful life. Expected salvage value is $20,000 at the end of year 3. Tax regulations permit the following depreciation schedule: Year Depreciation - Percent of Cost Deduction - similar to the IRS MACRS method 1 2 3 20% 32 19 15 14 4 5 Year The company's tax rate is 15% and its MARR 15 2%. The equipment is expected to generate the following cash savings and cash expenses: Cash Savings New Variable Expenses New Fixed Expenses ( not including der $11,000 $10,000 $2,000 each year of the asset's life $13,000 $10,000 1 $13,000 $12,000 Cash Savings New Variable Expenses New Fixed Expenses (not including Year depr) 1 $11,000 $10,000 $1,000 each year of the asset's life $13,000 $10,000 N 3 $13,000 $12,000 By producing new products from this machine, the company also expects to sell 5,000 units at $10 each for each and every year that this machine is running. Questions: 5) What other information would you want in order to make a more valuable recommendation to the company? 6) Create an Income Statement in the Variable Costing format showing the net income or loss attributed to this operating this machine - for Year 1 and 2 only. I 7) Would you recommend that the company purchase this asset? Why or why not? Engr Econ Assignment- Capital Budgeting metrics with pre-tax and after-tax cash flows. Pluskwik Manufacturing is considering purchasing a new production machine. The equipment will cost $150,000 and have a 3-year useful life. Expected salvage value is $20,000 at the end of year 3. Tax regulations permit the following depreciation schedule: Year Depreciation - Percent of Cost Deduction - similar to the IRS MACRS method 1 2 3 20% 32 19 15 14 4 5 Year The company's tax rate is 15% and its MARR 15 2%. The equipment is expected to generate the following cash savings and cash expenses: Cash Savings New Variable Expenses New Fixed Expenses ( not including der $11,000 $10,000 $2,000 each year of the asset's life $13,000 $10,000 1 $13,000 $12,000 Cash Savings New Variable Expenses New Fixed Expenses (not including Year depr) 1 $11,000 $10,000 $1,000 each year of the asset's life $13,000 $10,000 N 3 $13,000 $12,000 By producing new products from this machine, the company also expects to sell 5,000 units at $10 each for each and every year that this machine is running. Questions: 5) What other information would you want in order to make a more valuable recommendation to the company? 6) Create an Income Statement in the Variable Costing format showing the net income or loss attributed to this operating this machine - for Year 1 and 2 only. I 7) Would you recommend that the company purchase this asset? Why or why not