Use the following fact pattern for the questions, #20-25, below Stoner& Nordgren (S&N), Inc. prepares quality meals for demanding BGSU students. Company management is considering the purchase of new machinery to lower variable costs and increase the production quality of its "Go Falcon" brand of premium organic food ucts. Investment details are Cash cost of machine 10 Years ite of the machine annual cash variable cost labor savings (i.e. benefits Straight-Line depreciation is used by the firm over the life of the asset and no salvage value is expected. The income tax rate is 30% and firm's minimum desired rate of return is 12%. 20.(3 pts) Draw a timeline to document all relevant cash flows and the after-tax cash flows (benefits) expected per year. Next, determine the NPV of this investment opportunity and indicate whether the company should purchase the machine on a quantitative basis. n prepare an income statement to determine the 21.(3 pts Using a Key Formula, determine the approximate after-tax IRR of the investment. Show all work AND attach an Excel IRR template printout to the end of this quiz to prove your analvsis 22. IE the company had used DDB depreciation (rather than straight-line) in the above fact pattern: a. The pre-tax NPV would be lower b. The pre-tax NPV would be higher c. The after-tax NPV would be lower d. The after-tax NPV would be higher 23. IF the machine was fully depreciated (regardless of the depreciation method used) and then sold for S10,000 at the end of year 10: a. The pre-tax NPV would be lower b. The pre-tax NPV would not change. c. The after-tax NPV would be higher d. The after-tax NPV would not change. 24. (2 pts) Usingthe *original facts and applying Key Formula #3. what annual net after-tax cash inflow (ie. benefit) would be required if the company desired an 8% rate of return? A 16% rate of return? a) 8% return: The required periodic (annual) net after-tax cash inflow would be b) 16% return. The required periodic (annual) net after-tax cash inflow would be 25. (1 pt) Using the *original * facts, and based upon your analysis for question #20, what is the maximum purchase price the company would be willing to pay for this new machinery? No further calculations are required. Maximum Purchase price to be paid: S