Problem 13-12 NewProject Analysis Madison Manufacturing is considering a new machine that costs $350,000 and would reduce pre-tax manufacturing costs by $110,000 annually. Madison would use the 3-year MACRS method to depreciate the machine, and management thinks the machine would have a value of $33,000 at the end of its 5-year operating life. The applicable depreciation rates are 33.33%, 44.45%, 14.81%, and 7.42%. Working capital would increase by $35,000 initially, but it would be recovered at the end of the project's 5-year life. Madison's marginal tax rate is 40%, and a 11% WACC is appropriate for the project. Enter negative answers with minus sign. a. Calculate the project's NPV. Round your answer to the nearest dollar. $ l Calculate the project's IRR. Round your answer to two decimal places. % Calculate the project's MIRR. Round your answer to two decimal places. % Calculate the project's payback. Round your answer to two decimal places. b. Assume management is unsure about the $110,000 cost savings ~ this gure could deviate by plus 20%. Calculate the NPV over the ve-year period. Round your answer to the nearest dollar. 1; l Calculate the NPV over the ve-year period if this gure could deviate by minus 20%. Round your answer to the nearest dollar. $7l c. [Swoglttleise grfgvva'FuQ-ztss i'ho gosggnzgegg gisalgialysis With different values for the cost savmgs, the machine 5 salvage value, and the working capital (WC) requirement. She asks you to use the followmg Cost Salvage Scenario Probability Savings Value WC Worst case 0.35 $ 88,000$28,000$40,000 Base case 0.35 110,000 33,000 35,000 Best case 0.30 132,000 38,000 30,000 Calculate the project's expected NPV. Round your answer to the nearest dollar. $ Calculate the project's standard deviation. Round your answer to the nearest dollar. $ l Calculate the project's coefcient of variation. Round your answer to two decimal places