1. An item with a 3-year MACRS property class for depreciation purposes is purchased for $30,000. It is sold at the end of 2 years for $12,000. Net annual benefits from the use of this item are $9,800 in year 1 and $15,824 in year 2. a) Fill up the following table to determine the company's after tax cash flow for this investment. Assume the company is in 22% marginal tax bracket. Further assume that income tax rates for capital gains or losses are 15%. The MACRS depreciation rates are 33.33, 44.45, 14.81 and 7.41 percent for years 1 through 4 years respectively. 12 Table Yr. Before Tax cash flow MACRS depreciation Taxable income Income tax After tax cash flow