Income Tax Considerations in Capital Budgeting Decisions The company has decided to invest in some equipment that costs $50,000 today and will generate cash inflows of $20,000 per year for the 5-year life of the equipment. At the end of the five years, the equipment will have no salvage value. The company will depreciate the equipment using straight-line depreciation. The company’s tax rate is 30%, and its discount rate is 10%. Compute the net present value of this investment.