Please write out work and formulas (not just excel sheets)

5. (20 points) A machine initially costs $280,000. Projections concerning the machine are shown in the table below. Both operating expenses and income are assumed to occur at the end of each year. We plan to dispose of the machine at the end of the fifth year. The depreciation schedule is determined using the sum-of-the-years-digits method with a tax life of seven years and a tax salvage value of zero. The actual estimated salvage at the end of year 5 is $70,000. The tax rate is 30%. The after tax MARR is 10%. 3 Year Operating Expense Operating Income Depreciation 30,000 120,000 30,000 110,000 30,000 100,000 4 30,000 90,000 30,000 80,000 (a) Taxable Income ??? After Tax Cash Flow (b) a Fill in the depreciation schedule in the space provided in the table. Show your calculations below. b) Show the after-tax cash flows associated with operations in the five years in the table. Use the space below for calculations if needed. c) At the end of fifth year, what is the after-tax net gain (or loss) due to salvage of the machines? d) Using the results of parts b and c, write the equation that determines if the investment earns the required 10%. Do you accept or reject the investment on this machine