(Required for undergraduate students only) A company is considering purchasing a machine that cost $70,000. It will be used for 4 years and the salvage value will be $10,000. The machine will save $40,000 per year in labor, but it will incur $12,000 in operating and maintenance each year. The machine will be depreciated according to three year MACRS as given below. The company's tax rate is 40%. Draw the cash flow following the steps below. Given your answer in a table for different years. a. Determine depreciation value for each year. b. Determine income tax for each year. (For last year, don't forget the tax for capital gain.) c. Determine net cash flow for each year. Draw cash flow diagram. d. Determine IRR based on the cash flow diagram using Excel. Year, n 1234 class Depreciation rate 3 200% 33.33 44.45 14.81 7.41