0 Operating Activities Net Income Depreciation Investment Activities Year Year 1 2 $10,400 $12,019 $6,666 $4,445 $20,000 Investment Salvage Gains Tax 40% $8,000 Financial Activities $10,000 Borrowed Funds Principal Repayment $0 Net Cash Flow $10,000 6 He asked his assistant manager (you) to determine what is the net present worth of this project assuming a marginal tax rate of 40% and a MARR of 15%. 0 Operating Activities Net Income Depreciation Investment Activities Year Year 1 2 $10,400 $12,019 $6,666 $4,445 $20,000 Investment Salvage Gains Tax 40% $8,000 Financial Activities $10,000 Borrowed Funds Principal Repayment $0 Net Cash Flow $10,000 6 He asked his assistant manager (you) to determine what is the net present worth of this project assuming a marginal tax rate of 40% and a MARR of 15%