$09\mathrm{.}03-$PR$008$ Specialized production equipment is purchased for $\backslash (\backslash$$ $125,000\backslash ).$ The equipment qualifies as $5-$year equipment for MACRS$-$GDS depreciation. Suppose $\backslash (40\backslash \%\backslash )$ of the investment capital is borrowed at an annual compound rate of $\backslash (18\backslash \%\backslash )$ and the loan is repaid over a $4-$year period.The BTCF profile for the acquisition, shown below, includes a $\backslash (\backslash$$ $30,000\backslash )$ salvage value at the end of the $5-$year planning horizon. A $\backslash (25\backslash \%\backslash )$ tax rate applies. Develop tables using a spreadsheet to determine the ATCF for each year and the after$-$tax $\backslash ($ P W$,$ A W$,$ I R R $\backslash ),$ and $\backslash ($ E R R $\backslash )$ values if the after$-$tax $\backslash ($ M A R R $\backslash )$ is $\backslash (10\backslash \%\backslash ).$ Determine the $\backslash ($ P W $\backslash )$ of the ATCFs using: a$.$ Loan payment Plan $1.$ b$.$ Loan payment Plan $3.$ c$.$ State which of the two loan payment plans is preferred, and explain why it is preferred in terms of the relationship between the loan rate and the $\backslash ($ M A R R$\_\{$A T$\}\backslash ).$