Please use problem one to solve problem 2. No need to solve the problem number 1!!

(Required for undergraduate students only) A company is considering purchasing a machine that cost $70,000. It will be used for 4 years and the salvage value will be $10,000. The machine will save $40,000 per year in labor, but it will incur $12,000 in operating and maintenance each year. The machine will be depreciated according to three year MACRS as given below. The company's tax rate is 40%. Draw the cash flow following the steps below. Given your answer in a table for different years. a. Determine depreciation value for each year. b. Determine income tax for each year. (For last year, don't forget the tax for capital gain.) c. Determine net cash flow for each year. Draw cash flow diagram. d. Determine IRR based on the cash flow diagram using Excel. In Problem 9 , if the initial investment of $70,000 is financed with 15% annual interest rate, 4year amortization. Determine the cash flow following the steps below. Give answer in a table fo: different years. a. Determine depreciation value for each year. b. Determine the principal payment and interest payment for each year. c. Determine income tax for each year. (Interest payment can be deducted. Principal payment cannot. Don't forget tax due to capital gain for the last year.) d. Determine net cash flow for each year and draw cash flow diagram. (Don't forget principle payment) e. Determine IRR based on the cash flow diagram using Excel. (Required for undergraduate students only) A company is considering purchasing a machine that cost $70,000. It will be used for 4 years and the salvage value will be $10,000. The machine will save $40,000 per year in labor, but it will incur $12,000 in operating and maintenance each year. The machine will be depreciated according to three year MACRS as given below. The company's tax rate is 40%. Draw the cash flow following the steps below. Given your answer in a table for different years. a. Determine depreciation value for each year. b. Determine income tax for each year. (For last year, don't forget the tax for capital gain.) c. Determine net cash flow for each year. Draw cash flow diagram. d. Determine IRR based on the cash flow diagram using Excel. In Problem 9 , if the initial investment of $70,000 is financed with 15% annual interest rate, 4year amortization. Determine the cash flow following the steps below. Give answer in a table fo: different years. a. Determine depreciation value for each year. b. Determine the principal payment and interest payment for each year. c. Determine income tax for each year. (Interest payment can be deducted. Principal payment cannot. Don't forget tax due to capital gain for the last year.) d. Determine net cash flow for each year and draw cash flow diagram. (Don't forget principle payment) e. Determine IRR based on the cash flow diagram using Excel