2 parts to this:4.) Develop an ATCF for problem 3, if 50% of the initial investment is borrowed at an annual interest rate of 5% to be paid back in 4 equal payments. (Do not calculate PW or evaluate the merits of the project.)Problem that is pictured is problem 3.

An investment of $500,000 generates an annual income of $150,000 over the next 4 years with a salvage value of $200,000. At MARR=10% is this a good investment (use P.W. factor)? The effective tax rate is 40% and MACRS depreciation with a depreciation life of 3 years is employed