Use the following fact pattern for the questions. #20-25, below (11 ts t Manm Cunnings, Nigh & Parker, Inc. prepares quality meals for demanding BGSU stuadents. Conpany management is considering the purchase of new machinery to lower variable costs and increase the production quality of its "Go Falcon brand of food Cash cost of machine Investment details are 500,000 life of the machine annual cash variable cost labor sa Straight-Line depreciation is used by the fim over the life of the asset and no salvage value is expected. The income tax rate is 30% and firm's minimm desired rate of return is 6%. 4pts) DRAWA TIMELINE to document all relevant cash flows and then prepare an income statement to determine the after-tax cash flows (benefits) expected per year. Next, detemine the NPV of this investment opportumity and indicate whether the conmany should purchase the machine on a quantitative basis, 21.2 pts) Using a Key Fornmla, determine the approximate after-tar IRR of this investment. Show your work ANID attach an Ercel IRR te t to the end of this 22. IF the conpary 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 themachine was fully depreciated (regardless of the depreciation method used) and then sold for $30,000 at the end of year 20: 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) Using the tongnal" facts and apphing Key Formula #3". what annual net after-tax cash inflow (i.e. net benefit) would be required if the company desired an 8% rate of return? A 12% rate of return? a) 8% rerun. The required periodic (ammal) net after-tax cash inflow would be: b) 12% return The required periodic (amma) net after-tax cash inflow would be: 25 (1 pt) Using the tong nal" facts and based upon your analysis for question #20, what is the max mum price the company should be willing to pay for this new machinery? No calculations are certainly do so. Think it through! out you may Maximmm Price to be paid: S