12-41 Carolyn owns a data processing company. She plans to buy an additional computer for $20,000, use it for three years, and sell it for $10,000. She expects that the use of the com- puter will produce a net income of $8,000 a year. The combined federal and provincial in- cremental tax rate is 45%. Using a CCA rate of 55% and an interest rate of 12%, complete Table P12-41 to determine the net present worth of the after-tax cash flow. Table P12-41 Worksheet for Problem 12-41 Before-Tax Cash Flow Capital Cost Allowance Taxable Income Income Tax (27%) After-Tax Cash Flow Present Worth (12%) Year -$20,000 +8,000 +8,000 +8,000 +10,000 Net Present Worth = 12-41 Carolyn owns a data processing company. She plans to buy an additional computer for $20,000, use it for three years, and sell it for $10,000. She expects that the use of the com- puter will produce a net income of $8,000 a year. The combined federal and provincial in- cremental tax rate is 45%. Using a CCA rate of 55% and an interest rate of 12%, complete Table P12-41 to determine the net present worth of the after-tax cash flow. Table P12-41 Worksheet for Problem 12-41 Before-Tax Cash Flow Capital Cost Allowance Taxable Income Income Tax (27%) After-Tax Cash Flow Present Worth (12%) Year -$20,000 +8,000 +8,000 +8,000 +10,000 Net Present Worth =