24. Equivalent annual cash flow (S6.4) Look at Problem 23 where you calculated the equivalent annual cost of producing reformulated gasoline in California. Capital investment was

$400 million. Suppose this amount can be depreciated immediately for tax purposes. The marginal tax rate, including California taxes, is 25%, the cost of capital is 7%, and there is no inflation. The refinery improvements have an economic life of 25 years.

a. Calculate the after-tax equivalent annual cost.