show work on paper please!!

Broadway Paper Towels, Inc., is considering the purchase of a new machine at a cost of

$$11,070.$ The machine is forecasted to provide $$2,000$ per year in cash flow for eight

years. The company's cost of capital $($WACC$)$ is $12\%.$ Using the Internal Rate of

Return Method, evaluate this investment and state whether or not the investment should

be undertaken and why.

Assume a firm has earnings before depreciation and taxes of $$200,000$ and no depreciation.

It is in a $40$ percent tax bracket.

a$.$ Compute its cash flow.

b$.$ Assume it has $$200,000$ in depreciation. Recompute its cash flow.

c$.$ How large a cash flow benefit did the depreciation provide?

The Short$-$Line Railroad is considering a $$100,000$ investment in either of two companies.

The cash flows are as follows:

a$.$ Using the payback method, what will the decision be$?$

b$.$ Explain why the answer in part a can be misleading.