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Problem 2. A new energy efficient machine will provide savings of $50,000 per year for 3 years. The machine will be depreciated on a 3-year MACRS schedule, and will be sold for $28,000 at the end of year 3. The machine costs $100,000 and the tax rate is 25%. Find the NPV and IRR of the project. The discount rate is 13%. 1 MACRS 3-year 2 3 44.45% 14.81% 4 33.33% 7.41% 1 2 3 Savings Taxes Net Income Book Value at time of sale Taxes due After tax proceeds Fill in the project's cash flows and find the NPV of the project: 1 2 3 Total Cash flow The NPV is The IRR is