10. 13.22 (Spreadsheet exercise) You work for Tamimi Industries, which purchased robotics equipment for $500,000 six years ago. The equipment is in place today, has a total 10-year useful life, no salvage value, and a 5- year MACRS recovery period. The effective tax rate is 21% and the actual cash flow and depreciation amounts are shown.

(a) Use a spreadsheet to tabulate CFBT, CFAT, EBIT, and i* before and after taxes for 6 years of ownership. Is the after-tax approximation using the beforetax rate within 2% of the calculated after-tax i*, using a round-off to one decimal?

(b) What is one obvious difference between the CFBT and EBIT series?