=+18-29 KKK Equipment replacement, income taxes (continuation of 18-28) OBJECTIVES 3, 5, 7 Assume the same facts as in Problem 18-28, except that the plant is located in Auckland, New Zealand. Tenilite has no special waiver on income taxes. It pays a 35% tax rate on all income. Proceeds from sales of equipment above book value are taxed at the same 35% rate.

Required 1 Sketch the after-tax cash inflows and outflows of the modernise and replace alternatives over the 2016–2022 period.