Please use and show equations for all steps. My course requires the use of equations even when they are not neccessary or there is an easier way. Thanks

' ' A Aa Font Files Reuse Files B H Clipboard F Styles Voice Sensitivity Editor DEF G BUYING A NEW MACHINE 3. The Magic Company is considering buying a new machine for one of its factories. The machine cost is $125,000, and its expected life span is 8 years. The machine will be depreciated on the straight-line basis to a salvage value of zero; nevertheless, the company anticipates that it can sell the machine at the end of year 8 for $12,000. The machine is expected to reduce the production costs by $35,000 annually. If the appropriate discount rate is 12% and the corporate tax is 40%: (10 points) a. Calculate the project's NPV b. Calculate the project's IRR. 4 5 6 7 8 9 10 11 12 13 14 15 16