Basic capital budgeting problem with straight-line depreciation. The Roberts Company has cash inflows of $140,000 per year

Question:

Basic problem with straight-line depreciation. The Roberts Company has cash inflows of $140,000 per year on project A and cash outflows of $100,000 per year. The investment outlay on the project is $100,000. Its life is 10 years. The tax rate, rc, is 40%. The opportunity is 12%.
(a) Present two alternative formulations of the net cash flows adjusted for the depreciation tax shelter.
(b) Calculate the for project A, using straight-line depreciation for tax purposes. Net Present Value
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