Straightforward Capital Budgeting with Taxes (Non-MACRS-Based Depreciation); Sensitivity Analysis Dorothy & George Company is planning to acquire a new machine at a total cost of $30,600. The...

Straightforward Capital Budgeting with Taxes (Non-MACRS-Based Depreciation); Sensitivity Analysis Dorothy & George Company is planning to acquire a new machine at a total cost of $30,600. The machine’s estimated life is 6 years and its estimated salvage value is $600. The company estimates that annual cash savings from using this machine will be $8,000. The company’s after-tax cost of capital is 8%, and its income tax rate is 40%. The company uses straight-line depreciation (non-MACRS-based).

Required 1. What is this investment’s net after-tax annual cash inflow, rounded to nearest whole dollar? 2. Assume that the net after-tax annual cash inflow of this investment is $5,000; what is the payback period in years, rounded to 2 decimal places (e.g., 4.418 years = 4.42 years)? 3. Assume that the net after-tax annual cash inflow of this investment is $5,000; what is the net present value (NPV) of this investment? Use the built-in NPV function; round your final answer to nearest whole dollar.  4. What are the minimum net after-tax annual cost savings that make the proposed investment acceptable (i.e., the dollar cost savings that would yield an NPV of $0)? The present value factor for 8%, 6 years (Appendix C, Table 1) is 0.630; the present value annuity factor for 8%, 6 years (Appendix C, Table 2) is 4.623. Round final answer to the nearest whole dollar.