So I have a Cost Reduction Project question for my finance class I’m struggling with — Please answer with work in Excel in addition to the written answer so I can figure out where I am going wrong. All numbers are in 000sProblem Details & ExplanationIzze is considering whether to add a new bottling machine into production. This will be a 4 yr project.New machine required will cost $900and follows straight-line depreciation over the 4yrs with an estimated salvage value of 90 This machine will be sold at the salvage value at end of project.Also, $30will be spent training the new operators during yr 0 — this is a one time cost.The firm decides to SELL the old machine they are replacing at the market value of $40 at year 0 — it was purchased 6 yers ago at $300 & depreciated $50 each year.The new machine will reduce Izze’s bottling cost by $500 per year.The new machine would required $20 per year in ongoing maintenance expenses.The new machine will not result in any changes in working capital.Tax rate is 35%.Project WACC is 10%.QUESTIONS:- Should Izze buy the new machine?- Estimate project cash flows.- Calculate NPV of project and make the investment decision.Thank you!!