Your company is considering purchasing a new machine. An investment of $200,000 will produce an initial annual benefit of $45,000, but the benefits are expected to decline by $2,500 per year, making second-year benefits $42,500, third-year benefits $40,000, and so forth. Your firm uses straight-line depreciation, an 8-year useful life and no salvage value at the end of the 8 years. The tax rate is 42%. Question 3 Part A: Identify the correct formula to calculate the annual Taxable Income of a scenario similar to the one above. O Taxable Income = Before-Tax Cash Flow + Calculated Depreciation O Taxable Income = Before-Tax Cash Flow - Calculated Depreciation O Taxable Income = Before-Tax Cash Flow / Tax Rate O Taxable Income = Before-Tax Cash Flow * Tax RateYour company is considering purchasing a new machine. An investment of $200,000 will produce an initial annual benefit of $45,000, but the benefits are expected to decline by $2,500 per year, making second-year benefits $42,500, third-year benefits $40,000, and so forth. Your firm uses straight-line depreciation, an 8-year useful life and no salvage value at the end of the 8 years. The tax rate is 42%. Question 3 Part B: Identify the correct formula to calculate the annual After-Tax Cash Flow (ATCF) of a scenario similar to the one above. O ATCF = Before-Tax Cash Flow + Taxes O ATCF = Before-Tax Cash Flow - Taxes O ATCF = Taxable Income - Taxes O ATCF = Taxable Income + TaxesTaxable Income Before Tax Cash Flow Income Taxes (enter After Tax Cash Flow SL Depreciation (enter (enter either the (enter either the number either the number (enter either the Year either the number with no number with no with no decimals, or O if with no decimals, or 0 | number with no decimals, or 0 if blank) decimals, or O if blank) if blank) decimals, or 0 if blank) blank) 1 2 3 4 5 6