Please help me complete this! I have been struggling for a while, and mainly I need the answer! Thank you!

Question 3 (20 points): The Foundry is looking to purchase a new machine that has a purchase price of $5,000,000, an MACRS class life of 5 years and an estimated sale price of $300,000 at the end of year 3. The new machine would be sold at the end of its useful life (at the end of year 3). The new machine is expected to increase revenues by $500,000 and decrease costs by $200,000 per year. The company will incur working capital requirements which include a one-time increase in inventory of $100,000 and an increase in accounts payable of $150,000, reversing the entry for NWC at the end of the project. The Company's tax rate is 34% and its company's required return is 12% Question: Should the Foundry buy the machine? (Show calculations to support your answer) MACRS schedule for 5-year class life: Year 1 2 3 5 6 20% 32% 19% 12% 11% 6% 4 Year 2 Year 3 (a) Calculate the tax savings from depreciation Depreciation Expense Year 1 Depreciation Expense Tax Savings Year 1 Year 2 Year 3 (b) Cash Flows Year o Investment After tax Net Operating Income Dep'n Tax Savings (from part (a)) Net Working Capital Net Salvage New Machine Net Cash Flow (c) IRR of Project (d) Purchase Do Not Purchase