Suppose ACI is considering automating of an existing production process and purchasing a new machine which does not require any labor cost. The necessary equipment costs $100,000. ACI has a discount rate is 10 percent and plans to install the new machine in their existing factor. The new equipment has a five-year life and is depreciated to 40,000 on a straight-line basis over that period. The tax rate is 25 percent, and the automation process will increase gross profit by $20,000 per year. The machine will actually be worth $80,000 in five years. Should ACI automate? (Kindly note that you must show detailed calculation process. Without a detailed calculation process marks will be deducted. Excel calculation will be ignored.) 4 (You must show the detailed calculation process. Otherwise, marks will be deducted. Excel calculation will be ignored) Designated area for pasting the picture