Score Name Section Problem (10 points). Pomegranate Industries is considering the purchase of a new machine that it expects to improve its profitability. The machine is expected to produce the attached cash revenues and expenses over the next seven years of its useful life. The machine is expected to cost $300,000 and have an estimated salvage value of $10,000 at the end of its useful life. The company will depreciate the machine using 200% (double) declining balance depreciation. The company expects to have a 30% tax rate over the life of the machine and an after tax required rate of return of 11%. The company also would like all of its projects to pay back their investment within 4.5 years on an after tax basis. REQUIRED: (1) Prepare a capital budgeting analysis for this machine for the company, using the following capital budgeting models. (a) After tax accounting rate of return, using average investment in assets. Round your percentage to two decimal places (four decimal places in all). (b) After tax cash payback period. Round your answer to one decimal place. After tax net present value. Round your answer to the nearest whole dollar. Should the company invest in the machine? Explain the reason for your (2) answer. POMEGRANATE INDUSTRIES DATA RELATING TO ESTIMATED REVENUES AND EXPENSES FOR CAPITAL INVESTMENT IN MACHINE Year Cash Revenues Cash Expenses 1 $ 250,000 $ 220,000 2 325,000 255,000 3 340,000 350,000 270,000 290,000 4 5 400,000 300,000 280,000 6 350,000 7. 320,000 300,000