Please Provide Detail Discription About Part C Need All The Calculation.

Question 3 The company plans to get a new machine to increase its capacity. There are two machines can be selected: A and B. The lifetime of machine A or B is 4 years (value decrease to 0 at the end of year 4 ). The cash flows are shown below: a) Based on the payback rule, which Machine should the company buy? b) Based on the net present value, which Machine should the company buy? (Assume the required rate of return k is 5% ). c) For the $50000 investment, the company has two plans: - Plan A: use $10000 from the company and borrow $40000 from the bank to buy the machine. The borrowed money will be paid annually back to the bank (Equal loan payment) with an annual interest of 5% in 4 years. The maintenance is $1000 for each year paid by the company. - Plan B: lease the machine from the supplier with an annual payment of $15000 for two years and purchase the machine at the end of year 2 for $20000. The maintenance fee for the first two years is paid by the supplier and for the last two years is $1200 annually (paid by the company). The tax rate is 40% and the depreciation is a straight line (same amount every year). Based on the total present value cost (assume the discount rate is 5% ), which plan should the company use