QUESTION :A machine can be purchased for $10500 including transportationcharges

QUESTION :A machine can be purchased for $10500 including transportationcharges but installation costs will require $1500 more. Themachine is expected to last four years and produce annual cash revenuesof $6000. Annual cash operating expenses are expected to be$2000 with depreciation of $3000 per year. The firm has a 30percent tax rate. Determine the relevant after-tax cash flows andprepare a cash flow schedule.Use the information given above to do the following:a. Calculate the payback period for the machine.b. If the projects cost of capital is 10 percent would yourecommend buying the machine?c Estimate the IRR for the machine.