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54. An investment of S600.000 is made in equipment that qualities as 3-year equipment for MACRS.GDS depreciation. The before tax cash flow measured in constant
54. An investment of S600.000 is made in equipment that qualities as 3-year equipment for MACRS.GDS depreciation. The before tax cash flow measured in constant dollars for the investment consist of a uniform a l series of $200.000 plus a $200.000 sal value at the end of the 5-year planning horizon A 40% tax rate and 3% inflation rate apply. The real ATMARR is 10% a. Determine the after tax cash flows, in constant dollars, for each year, ANSWER - 5600,000.00 $ 197,662.14: 5220,556.13: $ 152.527.80, 5135.800.85 $ 240,000.00 b. Determine the present worth for the investment ANSWER $118,341.96 c. Determine the real internal rate of refum for the investment ANSWER 17.529
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