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(15 pts) 10. The information shown below is for a project. Years Gross Income Operating Expenses First Cost Salvage 0 130,000 1 60,000 55,000 2

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(15 pts) 10. The information shown below is for a project. Years Gross Income Operating Expenses First Cost Salvage 0 130,000 1 60,000 55,000 2 75,000 50,000 3 90,000 45,000 4 105,000 40,000 10,000 A. Determine the CFBT and CFAT series. Show CFBT and CFAT tables. The effective tax rate is 32%. Apply the MACRS with n=5 years. B. Obtain the before-tax ROR (ROR of CFBT series) and the after-tax ROR (ROR of CFAT series). The calculation is required for this problem. Determine the project's economic success if the after-tax MARR is 5%

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