please show all work, thank you in advance! 7) (35 points) EmKay, Inc. is considering an investment in a new production equipment to boost its revenue. For this new investment, the following data apply: Purchase price=$900,000 {$360,000 from company funds and $540,000 from a loan} Useful Life:4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $90,000 Effective tax rate: 35% Estimated annual O&M costs:$48,000Estimated new annual revenue: $360,000 Conditions on loan: Nominal annual rate of 5% per year compounded annually. The loan is to be repaid over 3 years with equal annual payments. a) Loan calculations - principal and interest payments. (Round off values to the nearest dollar) b) Find the ATCF for each year of this investment (Round off values to the nearest dollar) EOY BT&LCF Loan Principal Payment Loan Interest Payment MACRS- GDS Deduction Taxable Income Tax ATCF 0 2 3