please solve according to pearson with proper working notes

20-40 NEW EQUIPMENT PURCHASE, INCOME TAXES. Anna's Bakery plans to purchase a new oven with an estimated useful life of four years. The estimated pretax cash flows for the oven are as shown in the table that follows, with no anticipated change in working capital. Anna's Bakery has a 12% after-tax required rate of return and a 40% income tax rate. Assume depreciation is calculated on a straight-line basis for accounting purposes using the initial oven investment and estimated terminal disposal value of the oven. Assume all cash flows occur at year-end except for initial investment amounts. Equipment is subject to 20% CCA rate declining balance for income tax purposes. LO 5 1. a. Total present value of recurring after-tax operating savings, $65,599 Relevant Cash Flows at End of Each Year \begin{tabular}{l|c|c|c|c|c|} \hline & 0 & 1 & 2 & 3 & 4 \\ \hline InitialmachineinvestmentAnnualcashflowfromoperations(excludingthedepreciationeffect) & $(95,000) & & & & \\ \hline \end{tabular} Required 1. Calculate (a) NPV, (b) payback period, and (c) IRR. 2. Compare and contrast the capital budgeting methods in requirement 1