2. You are working for an ethanol plant and they are considering adding an additional processing step to remove the corn oil prior to fermentation with the following estimates: 3 years 250,000 straight line Project life Initial cost (also depreciable basis) Tax depreciation method Salvage value Sales Labor and material MAAR (after tax) Income tax rate 80,000/yr 25,000/yr 10% 30% Year Income Statement Revenue Expenses Labor+ materials Depreciation amount Taxable income Income taxes Net income Cash Flow Statement Operating activities Net income Depreciation Investment activities Investment Salvage Gains tax Net cash flow 2. You are working for an ethanol plant and they are considering adding an additional processing step to remove the corn oil prior to fermentation with the following estimates: 3 years 250,000 straight line Project life Initial cost (also depreciable basis) Tax depreciation method Salvage value Sales Labor and material MAAR (after tax) Income tax rate 80,000/yr 25,000/yr 10% 30% Year Income Statement Revenue Expenses Labor+ materials Depreciation amount Taxable income Income taxes Net income Cash Flow Statement Operating activities Net income Depreciation Investment activities Investment Salvage Gains tax Net cash flow