2. An asset with a first cost of $9000 is depreciated by MACRS over a 5-year recovery period. The CFBT is estimated at $10,000 the first 4 years and $5000 thereafter as long as the asset is retained. The effective tax rate is 40%, and the interest rate is 10% per year. In present worth dollars, how much of the cash flow generated by the asset over its recovery period is lost to taxes? (Ans. $12,267 in PW dollars)