Homework-Chapter 11 A Computerized Machining Center (CMC) has been proposed for small tool manufacturing company. If the new systerm, which costs $250,000, is installed, it will generate ansual revenues of $185,000 and will require $20,000 in annual labor, $12,000 in annual material expenses and anothber $8,000 in annual overhead (power and utility) expenses. The CMC would be classified as a 7-ycar MACRS property. The company expects to dispose out the facility at the end of year 3 and will be sold for $100,000. Assume a tax rate of 35% a. Develop the project's cash flow over its project life by filling up the following Table. On an Excel Sheet so that I can trace your calculations INCOME STATEMENT Expenses: Labor Taxable Income Net Income CASH FLOoW STATEMENT STATEMENT Revenues: Expenses: Labor Material Depreciation Taxable Income Net Income CASH FLOW STATEMENT Net I Gain (loss) tax NET CASH FLOW On the same Escel Sheet, please show your detailed calculatioas of the following ckements Total depeeciation Book Value Giain for loss) due so salvaging the CMC Gain tax for credit) due to salvaging the CMO X D Course Content sall de Home -kfupm.edusa dt-content-rid-7733059 1/courses/12622.201810.LEC/Homework307pdf -Top 10 Most Popular Il Subscene-Browse s McD Google uayin Most Popular Move Netfix plex Total depreciation: Book Value: Gain (or loss) due to salvaging the CMC Gain tax (or credit) doe to salvaging the CMC: b. On the same excel sheet, provide a sensitivity analysis based on the following table and draw a sensitivity analysis graph (like the one in the book) y-axis is NPV and Xaxis is the % change and e e lines representing the different paraneers ofiensts Deviation 0% 10% 20% Labor costs Material espenses Overhead es pennes Salvage value