Please show calculations and steps! Thank you!

Background information for Questions 1., 2., 3. XYZ Company is considering the purchase of a new machine and the manufacturer of the machine provides a guarantee that it will reduce manufacturing costs by $5,000 annually. In addition, the machine produces better quality output that can sell for higher price, thus, increases earnings before depreciation and taxes by $6,000 annually. This machine costs $40,000 with an economic life of 5 years and will be depreciated according to the Depreciation Schedule given below. XYZ Company expects to sell the machine at the end of 5 years for $10,000 before taxes. The purchase of this machine will not change the current amount of working capital requirement. XYZ Company's marginal tax rate is 40 percent. Its target capital structure comprises of 30% debt and 70% common equity. Currently its debt is in one single outstanding issue of corporate bond with a coupon rate of 9.5% and a yield-to-maturity of 8%. XYZ Company's common stock has a beta of 1.24 and the required rate of return of 13.7%. The Treasury bond yield is 5% and market risk premium is 7%. For higher-risk projects, XYZ Company typically adds 2 percent to its overall WACC, and for lower-risk projects, it deducts 2 percent from its overall WACC to calculate the risk-adjusted discount rate. Depreciation Schedule Question 1 Derive incremental cash flows of the cost-saving project. (15 marks) Question 2 If XYZ's investment decision is based on Net Present Value (NPV), should it invest in the machine? Explain your logics with supporting calculations. If XYZ's investment decision is based on Modified Internal Rate of Return (MIRR), should it invest in the machine? Explain your logics with supporting calculations