Your company is contemplating the purchase of a large stamping machine The machine will cost $180,000 with tonal 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 estimated as $40 COD The IRS has assured you that this machine will fall under a three year MACRS class life category The stilications for this machine include $40,000 Savings per year in labor and $30,000 Savings per year in reduced materials. The before ax MARR is 20% per year, and the effective income tax rate is 10% Using the table below as a guide, answer questions (a) through (c) EOY Alter Tax Cash Cash Flow Depe Before Taxes Doduction Loen Interest Payment Taxable Income Cash Flow for Loan Cash Taxes Flow (a) The cash flow for taxes in year 1 is closest to: O A. $22,220 OB. $2,000 O c. $-6,670 OD. $16,450 (b) The after-tax cash flow at the end of year 1 is closest to: O A. $53,550 O B. $76,670 O C. $68,000 O D. $47,780 (c) The taxable income for year 3 is most nearly O A. $41,120 O B. $5,010 OC. $-16,680 O D. $55,550