10.43 Gentry Machines, Inc., has just received a special job order from one of its clients The following financial data on the order have been collected: This two-year project requires the purchase of a special-purpose piece of equipment for $55,000. The equipment falls into the MACRS five-year class The machine will be sold at the end of two years for $27000 (today's dollars). The project will bring in an additional annual revenue of $114,000 (actual dollars), but it is expected to incur an additional annual operating cost of $53,800 (today's dollars). To purchase the equipment, the firm expects to borrow $50,000 at 10% over ) The a two-year period (equal annual payments of $28,810 in actual dollars remaining $5,000 will be taken from the firm's retained earnings. The firm expects a general inflation of 5% per year during the project period The firm's marginal tax rate is 40%, and its market interest rate is 18%. (a) Compute the after-tax cash flows in actual dollars. (b) What is the equivalent present worth of this amount at time 0