6. Income Statement, Straight Line Depreciation (25 points) A project has a first cost of $315,000, with no salvage value. It will generate annual revenues of $75,000, annual expenses of $25,000, and has a recovery period project life of 12 years. (Note these Rate of Returns can be solved relatively easy without Excel). a. Using straight line depreciation, an effective tax rate of 25%, and an after-tax MARR of 9% per year (12% per year before-tax), construct a complete cash flow statement. (10 points) b. What is the NPV of the before-tax cash flow? What is the before-tax Internal Rate of Return (IRR)? (5 points) c. What is the NPV of the after-tax cash flow? What is the after-tax Internal Rate of Return (IRR)? (5 points) d. Based on the results of parts b&c, would you recommend the project? (5 points) 6. Income Statement, Straight Line Depreciation (25 points) A project has a first cost of $315,000, with no salvage value. It will generate annual revenues of $75,000, annual expenses of $25,000, and has a recovery period project life of 12 years. (Note these Rate of Returns can be solved relatively easy without Excel). a. Using straight line depreciation, an effective tax rate of 25%, and an after-tax MARR of 9% per year (12% per year before-tax), construct a complete cash flow statement. (10 points) b. What is the NPV of the before-tax cash flow? What is the before-tax Internal Rate of Return (IRR)? (5 points) c. What is the NPV of the after-tax cash flow? What is the after-tax Internal Rate of Return (IRR)? (5 points) d. Based on the results of parts b&c, would you recommend the project? (5 points)