PLEASE COMPLETE NEED BY 5 pm. Being asked to FIRST answer the question from the book as it is asked in the book AND THEN by using MACRS depreciation. PLEASE ensure answer given corresponds with check figures given at the bottom on the book problem. PLEASE HELP.

Home Insert Page Layout Formulas Data Review view Old Machine New Machine $150,000 $190,000 2 Initial purchase cost of machines 8 5 3 Useful life from a date (years) Terminal disposal value at the end of useful life on 4 Dec. 31, 2018, assumed for depreciation purposes 20,000 S 25.000 5 Expected annual cash operating costs Variable cost per can of am 025 S 0.19 S 7 Total fixed costs 25,000 24,000 straightline Straight line 8 Depreciation method for tax purposes 9 Estimated disposal value of machines S190,000 10 January 1, 2014 68,000 12000 S 22,000 11 December 31, 2018 475.000 12 Expected cans of jam made and sold each year 475,000 roaty is subject to a 34% income tax rate. Assume that any gain or loss on the sale of machines is treated as n ordinary tax item and will affect the taxes paid by Frooty in the year in which it occurs. Frooty's after-tax equired rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts. 1. A manager at Froaty asks you whether it should buy the new machine. To help in your analysis, calcu Required late the following: a. One-time after-tax cash effect of disposing of the old machine on January 1, 2014 b. Annual recurring after-tax cash operating savings from using the new machine (variable and fixed) c. Cash tax savings due to differences in annual depreciation of the old machine and the new machine d. Difference in after-tax cash flow from terminal disposal ofnew machine and old machine 2. Use your calculations in requirement 1 and the net present value method to determine whether Frooty should use the old machine or acquire the new machine 3. How much more or less would the recurring after-tax cash operating savings of the new machine need to be for Frooty to earn exactly the 12% after-tax required rate of return? Assume that all other data about the investment do not change