Masters machine shop is considering for your project to improve its production efficiency. Buying a new machine press for $385,000 is estimated to result in $145,000 in annual pre-tax cost savings. The Pres falls in the MACRS 5 year class and it will have a salvage value at the end of the project and $45,000. The press also requires an initial investment and spare parts inventory and $20,000 along with an additional $3100 in inventory for each succeeding year of the project. If the shops tax rate is 22% and it's discount rate is 9% sure the company by and install the machine press? is attached the correct answer? if so, please explain the cash flows and how to arrive at rhem specifially in year 4. show calculations please

COMPUTE MACROS DEPRECIATION FOR EACH OF THE FOUR YEARS PRE TAX SAVINGS $145,000 DEPRECIATION $77,000.00 EBIT $68,000 LESS TAX @ 22% $14,960.00 AFTER TAX $53,040.00 MACRS DEPRECIATION RATE 20% ADD DEPRECIATION $77,000 ANNUAL OPERATING CASH FLOW $130,040.00 $145,000.00 $123,200.00 $21,800 $4,796.00 $17,004.00 32.00% $123,200 140,204.00 $145,000.00 $79,920.00 71,080.00 $15,637.60 $55,442.40 19.20% $73,920 $129,362 40 $145,000.00 $344,35200 $100,648.00 $22,142 56 $78,50544 11.52% $14,352 $122,857.44 -385,000 20000 $29,300 00 145000 13 YEAR 14 INITIAL INVESTMENT 15 WORKING CAPITAL INVENTORY INVESTMENT) 16 ANNUAL PRETAX SAVINGS 17 LESS DEPRECIATION 18 LESS INVENTORY COST 19 INCOME BEFORE TAX 20 LESS TAX @ 22% 21 INCOME AFTER TAX 22 PLUS DEPRECIATION 23 AFTER TAX CASH FLOW SALVAGE VALUE 25 CASH FLOWS 26 PV DISCOUNT 9% 27 PRESENT VALUE $3,100.00 145000 -77,000 3100 64900 14278 50622 77000 127622 $3,100.00 145000 -123200 3100 18700 4114 14586 123200 137786 $3,100.00 145000 -73920 3100 67980 - 14956.6 52024.4 73920 125,944 40 3100 97548 -21460.56 76087.44 44352 120439.44 45000 5201,893 60 0 708425 $143.026.52 -$405,000 $126,940.00 $137, 104 00 0.084168 $115,397,60 $126,262 40 0.7721834 97,497.74 $405,000 $116,458 72 $67,380.67 CALCULATE AFTER TAX SALVAGE VALUE SALVAGE VALUE $45,000 BOOK VALUE AT SALE $66,528.00 PROFIT AT SALE -$21,528.00 $45,000.00 SALVAGE VALUE LESS TAX ON GAIN AFTER TAX SALVAGE VALUE $4,736.16 $49,736 16 COMPUTE MACROS DEPRECIATION FOR EACH OF THE FOUR YEARS PRE TAX SAVINGS $145,000 DEPRECIATION $77,000.00 EBIT $68,000 LESS TAX @ 22% $14,960.00 AFTER TAX $53,040.00 MACRS DEPRECIATION RATE 20% ADD DEPRECIATION $77,000 ANNUAL OPERATING CASH FLOW $130,040.00 $145,000.00 $123,200.00 $21,800 $4,796.00 $17,004.00 32.00% $123,200 140,204.00 $145,000.00 $79,920.00 71,080.00 $15,637.60 $55,442.40 19.20% $73,920 $129,362 40 $145,000.00 $344,35200 $100,648.00 $22,142 56 $78,50544 11.52% $14,352 $122,857.44 -385,000 20000 $29,300 00 145000 13 YEAR 14 INITIAL INVESTMENT 15 WORKING CAPITAL INVENTORY INVESTMENT) 16 ANNUAL PRETAX SAVINGS 17 LESS DEPRECIATION 18 LESS INVENTORY COST 19 INCOME BEFORE TAX 20 LESS TAX @ 22% 21 INCOME AFTER TAX 22 PLUS DEPRECIATION 23 AFTER TAX CASH FLOW SALVAGE VALUE 25 CASH FLOWS 26 PV DISCOUNT 9% 27 PRESENT VALUE $3,100.00 145000 -77,000 3100 64900 14278 50622 77000 127622 $3,100.00 145000 -123200 3100 18700 4114 14586 123200 137786 $3,100.00 145000 -73920 3100 67980 - 14956.6 52024.4 73920 125,944 40 3100 97548 -21460.56 76087.44 44352 120439.44 45000 5201,893 60 0 708425 $143.026.52 -$405,000 $126,940.00 $137, 104 00 0.084168 $115,397,60 $126,262 40 0.7721834 97,497.74 $405,000 $116,458 72 $67,380.67 CALCULATE AFTER TAX SALVAGE VALUE SALVAGE VALUE $45,000 BOOK VALUE AT SALE $66,528.00 PROFIT AT SALE -$21,528.00 $45,000.00 SALVAGE VALUE LESS TAX ON GAIN AFTER TAX SALVAGE VALUE $4,736.16 $49,736 16