Please do not use excel but if you do show the written formulas and show all steps. Thank you!!

A company is considering purchasing and installing a new machine. The purchase cost is estimated to be $20,000 and installation cost including training is estimated to be $5,000. Its maintenance cost is estimated to be $2,000 per year starting EOY 1 and increasing by 5% per year for 9 additional years. Revenue is estimated to be $10,000 per year starting EOY1 and continuing for 4 additional years. Revenue is estimated to increase to $12,000 starting EOY 6 and increasing by $1,000 each year for the next 4 years. The company's MARR is 15%. 1. Draw a cash flow diagram from the company's perspective. 2. What is the present worth of all cash flows evaluated at MARR? a. Based on your PW(MARR) would you recommend the purchase and installation of the machine? b. Why or why not? Be very specific and state the basis for your decision? 3. Your boss appreciates all your work and understands your recommendation for approval is based on the expected return being more than MARR. However, he/she wants to know how much more than MARR. You decide to calculate the internal rate of return (IRR). a. What is the IRR for this project using Excel? b. How does it compare to MARR? A little larger, somewhat larger, a lot larger