The Balas Manufacturing Company is considering buying an overhead pulley system. The new systern has a purchase price of $150,000, an estimated useful life and MACRS class life of five years, and an estimated salvage value of $10,000. The system is expected to enable the company to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective products made. A total annual savings of $95,000 will be realized if the new pulley system is installed. The company is in the 35% marginal tax bracket. The initial investment will be financed with 40% equity and 60% debt. The before-tax debt interest rate, which combines both short-term and long-term financing, is 12% with the loan to be repaid in equal annual installments over the project life. 3 i More Info Click the icon to view the MACRS depreciation schedules. Click the icon to view the interest factors for discrete compounding when i = 12% per year. Click the icon to view the interest factors for discrete compounding when i= 20% per year. 3 10 Class Depreciation (a) Determine the after-tax cash flows. Fill in the table below. (Round to the nearest dollar) Yearn 200% 200% 200% 200% rate X Net After-Tax Cash Period - lore Info 33.33 44.45 14.81 7.41 20.00 32.00 19.20 11.52 Flow $ - 60000 $ 51063 $ 56768 $ 49382 $ 44603 $ 53767 14.29 24.49 17.49 12.49 8.93 8.92 8.93 4.46 11.52 5.76 N 10.00 18.00 14.40 11.52 9.22 7.37 6.55 6.55 6.56 6.55 3.28 Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.1200 0.8929 1.2544 0.7972 1,4049 0.7118 1.5735 0.6355 1.7623 0.5674 1 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, i, N) (P/A, I, N) 1.0000 0.8929 0.4717 1.6901 0.2963 2.4018 0.2092 3.0373 0.1574 3.6048 Compound Amount Factor (F/A, 1, N) 1.0000 2.1200 3.3744 4.7793 6.3528 Capital Recovery Factor (AVP, i, N) 1.1200 0.5917 0.4163 0.3292 0.2774 1.9738 2.2107 2.4760 2.7731 3.1058 0.5068 0.4523 0.4039 0.3606 0.3220 8.1152 10.0890 12.2997 14.7757 17.5487 0.1232 0.0991 0.0813 0.0677 0.0570 4.1114 4.5638 4.9676 5.3282 5.6502 0 2432 0.2191 0.2013 0.1877 0.1770 Year to switch from declining balance to straight line