6) (25 points) A company is considering purchasing new equipment that is expected to generate an additional income of $50,000 annually. The equipment will have an initial cost of $75,000 and estimated annual operating and maintenance costs of $20,000. Its estimated salvage value at the end of its useful life of 4 years will be $15,000. The equipment is a MACRS-GDS 3-year property for calculating depreciation deductions. The effective tax rate is 35%. a) (20 points) For this new equipment, determine the after-tax cash flow for each year of operation. (Round off values to the nearest dollar) EOY BTCF Tax ATCF MACRS-GDS Deduction Taxable Income 0 1 2 3 4 b) (5 points) If the company decides to sell the equipment at the end of 3 years for $25,000, determine the new after-tax cash flow for year 3. (Round off values to the nearest dollar) EOY BTCF Tax ATCF MACRS-GDS Deduction Taxable Income 3