Question 4 (21 points) Seved Defence Electronics Inc. is considering the purchase of a new machine for $325,000. The firm's old machine has a book value of $50,000 but can be sold today for $20,000. The new machine will be subject to a CCA rate of 25 percent. It is expected to save an annual cash flow of $62,000 per year for 7 years through reduced fuel and maintenance expenses. The company will need to invest $10,000 in spare parts inventory (working capital) when they purchase the machine. At the end of the 7 years the company believes it can sell the machine for $40,000. Defence Electronics Inc. has a 12 percent cost of capital and a 40 percent tax rate. Font Famil 3 (12pt) Required: A. Complete the following table by entering the present value, after-tax, of each of the following cash flows. Enter all cash flows net of tax, where applicable. Round all cash flow numbers to zero decimal places. - Enter cash outflows as negative numbers. Present Value, after tax $ (325,000) Description Initial investment Trade-in Expense savings Salvage CCA tax shield Working capital (net of recovery) Net Present Value 40000 7 e the follow XE 10 K n in support of your calculation (add space by hitting the