Please dont use Excel and answer all the parts of the questions. Make sure to show your work!!

Problem 3 Machine Useful Life 20 yrs II 25 yrs Initial Cost Salvage Value Annual Operating Cost $80,000 $20,000 $18.000 $100,000 $25,000 $15,000 first 10 years 20,000 thereafter A company is considering buying a new piece of machinery. A 10 percent interest rate will be used in the computations. Two models of the machine are available. a. Determine which machine should be purchased, based on the equivalent uniform annual cost. b. What is the capitalized cost of machine I? c. Machine I will produce an annual saving of material of $28,000. What is the rate of return if machine I is installed? d. What will be the book value of the machines I after 2 years, based on straight-line depreciation? Problem 4 A medium-sized profitable corporation is considering the purchase of a $3000 used pickup truck for use by the shipping and receiving department. During the truck's 5-year useful life, it is estimated that the firm will save $800 per year after all the costs of owning and operating the truck have been paid. Truck salvage value is estimated at $750. Assume a 34 percent tax rate. a. Make the before-tax and after-tax cash flow table. b. What is the before-tax rate of return? c. Assuming a straight-line deprecation, what is the after-tax rate of return