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I have build a capital budgeting analysis table, the result is attached as Table.1. Look at the table;it aims to calculate the taxed net cash flow and two kind of investment criteria ratios. Besidesthose titles, on line 3, there is an initial outlay for the facility in year zero, and year zero meansthe beginning of the first year. On line 4, here are cost savings for future three years, which areour benefits of this project. They are calculate by the function below:Cost Saving=weeks per year×diliveryamount ×cost saving per diliveryFor example, it is (52*600*7) dollars in the first year. On line 5, here are the additional annualcosts I mentioned in the second paragraph. On line 7, here are average depreciations for threeyears calculated by the straight-line depreciation. On line 8, the change in taxable income isprepared for the next tax liability; its function is listed below:Change∈Taxable Income=Cost Saving−Added Annual Cost – DepreciationWhatever these taxable incomes are positive or negative, they all contribute to the tax liability, sowe cannot ignore the negative numbers. On line 9, the change in tax liability is the result ofchange in taxable income times tax rate.