Your company is considering buying a new machine that will cost $800000. The m

Your company is considering buying a new machine that will cost $800000. The machine will be depreciated as a %u201C5 year asset%u201D using
the MACRS schedule (see below). Due to automation features that you currently do not have the new machine will allow your company to lower salary costs by
$140000 per year for the next five years. At the end of the five years you expect to sell the machine for $120000. Assume your company%u2019s cost of
capital is 8% the tax rate is 32% and that the company has sufficient income to absorb any tax losses. Calculate the following values for
the project

5 YR Depreciation Schedule

1

2

3

4

5

6

20%

32%

19.20%

11.52%

11.52%

5.76%

A) CF0

B) CF1

C) CF2

D) CF3

E) CF4

F) CF5

G) Net Present Value (NPV)

H) Internal Rate of Return (IRR)