1. We are considering buying a building and some other equipment to increase our production rates Project life: 5 years Expected income & expenses in Table 1 Equipment loan: paid in 5 equal annual payments Loan interest rate is 6% compounded monthly 146 12 o.016778 - I Loan repayment starts in Year 1 it 6.17 The building and equipment depreciate as 5-year property using straight line depreciation The income tax rate is 23% no inflatio... MARR is 12% a) Calculate the present worth of the project on an after tax basis.Show all your work. a b) What is the total amount of interest paid on the loan? Alat 336 1. We are considering buying a building and some other equipment to increase our production rates Project life: 5 years Expected income & expenses in Table 1 Equipment loan: paid in 5 equal annual payments Loan interest rate is 6% compounded monthly Loan repayment starts in Year 1 The building and equipment depreciate as 5-year property using straight line depreciation The income tax rate is 23 % inflation... MARR is 12% no a) Calculate the present worth of the project on an after tax basis.Show all your work. b) What is the total amount of interest paid on the loan? Name Table 1 (for Problem 1) Building Equipment Loan, S $100,000 Operating Costs, S Cost, Income, $ Year $60,000 $70,000 $15,000 $70,000 $15,000 $70,000 3 $15,000 $15,000 $15,000 4 $70,000 5 $70,000