Question 3. [20 marks) Carson Auto is currently considering whether or not to acquire a new machine for its manufacturing operation. The machine costs $800,000 and will be depreciated using straight-line depreciation toward a zero salvage value over the next five years. During the life of the machine, no new capital expenditures or investments in working capital will be required. The new handler is expected to save Carson $280,000 per year before taxes of 30%. (a) What are the annual free cash flows for the project? [10 marks (b) Find the maximum cost of capital that makes Carlson acquire the machine. [10 marks)