Your company is contemplating the purchase of a large stamping machine. The machine will cost $180,000 With additional transportation and installation costs of $5,000 and $10,000, respectively, the cost basis for depreciation purposes is $195,000. Its market value at the end of five years is estimated as $40,000. The IRS has assured you that this machine will fall under a three-year MACRS class life category. The justifications for this machine include $40,000 savings per year in labor and $30,000 savings per year in reduced materials. The before-tax MARR is 20% per year, and the effective income tax rate is 40%. Using the table below as a guide, answer questions (a) through (c). Cash Flow Depr. Before Taxes Deduction Loan Interest Taxable Payment Income Cash Flow for Loan Cash Flow Taxes After-Tax Cash Flow AWNO (a) The cash flow for taxes in year 2 is closest to O A. $22,220 O B. $2,000 OC. $16,450 OD. 5-6,670 O A. $22,220 O B. $2,000 O C. $16,450 OD. $ -6,670 (b) The after-tax cash flow at the end of year 2 is closest to O A. $47,780 O B. $76,670 OC. $68,000 OD. $53,550 (c) The taxable income for year 4 is most nearly O A. $41,120 O B. $5,010 OC. $-16,680 O D. $55,550