6) (28 points) A company is considering purchasing new equipment that is expected to generate an additional income of $100,000 annually. The equipment will have an initial cost of $150,000 and estimated annual operating and maintenance costs of $40,000. Its estimated salvage value at the end of its useful life of 4 years will be $30,000. 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 MACRS-GDS Taxable Tax ATCF Deduction Income 0 1 2 3 4 b) (8 points) If the after-tax MARR is 10% per year compounded annually, compute the PW of the after-tax cash flows. Based on this PW, would you recommend the purchase of this new equipment