QUESTION 2 [45 MARKS] A processing plant is considering whether to invest in a gasoline-driven pump or an electrically powered pump. The data are as follows: Item Gasoline Pump Electric Pump First cost, $ 2500 5500 Estimated Life, year 6 Capital recovery at end of life, $ 600 1500 Annual utility expenses 500 600 Annual maintenance 300 250 Yearly benefit saving, $ 1800 2000 3 (a) If the MARR is 5%, which machine should be bought? Use the IRR analysis to determine your selection and compare the findings with the payback period method. Are there any differences in the outcome? Why? [25 Marks) [CO2, PO2, C4) 6) From the selection obtained from the IRR analysis (Q2 (a)), calculate the before-tax and after-tax rate of return using a 34% incorne tax rate. For this case, straight-line depreciation applies. [20 Marks) (CO2, PO2, C4