1) An injectionmoldingmachine can be purchasedandinstalledfor $90,000. It is expected to be kept in service for eight years. It is believed that $10,000 can be obtained when the machine is disposed of the at the end of year eight. The net annual value added that can be attributed to this machine is constant over eight years and a mounts to $15,000. An effective income tax-rate of 40% is used by the company, and the before-tax MARR equals 25% per year. Use 150% Declining Balance depreciation method is

a) Determine the depreciation amounts in year one through eight?

b) Set up a table and calculate the ATCF for this machine.

c) Draw and compare the BTCF and ATCF cash flow diagrams.

d) Using IRR method, determine if the machine is purchased.