Question: Please show the step using standard notation factor. Please do not use excel. Generics Perfume Corporation, in the USA, is planning to purchase a solvent

Please show the step using standard notation factor. Please do not use excel.
Generics Perfume Corporation, in the USA, is planning to purchase a solvent extraction machine
for extracting essential oils from flowers. Machine A will cost $520,000 with a resale value of
$150,000. Machine B will cost $350000 with a resale value of $90,000. For the extraction process,
Machine A will use 45 kg solvent/day while Machine B will use 55 kg solvent/day. Both machines
will provide an operating revenue of $250,000 per year at 260 working days/year. Cost of solvent
is $6.25//kg and both machines will have a 5-year life service. An average tax rate of 40% will be
imposed on any taxable income.
(a) Tabulate the cash flow after tax series if a straight-line depreciation is applied.
(15 Marks)
(b) Determine which machine should be bought by using the cash flow after tax values with the
after-tax MARR is 9% per year.
(10 Marks)
Please show the step using standard notation

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