a)

b)

The software for the environmental monitoring system can be procured through contracted services. Annual contract costs are fixed at $5,000 and other annual expenses incurred total $1,000 in real dollars. The general inflation rate is 5% and the after-tax real interest rate is 10%. The effective tax rate is 21%. What interest rate should you use to convert the After-Tax Cash Flow (ATCF) in any given year to the present worth of the ATCF? Provide the number as either a decimal or percent. Focus your analysis on EOY 3. Your use of negative signs should be consistent with of the contract cost already in the table. EOY Contract Other Expenses Taxable income Tax ATCF PW (ATCF) 3 ($5,000) Determine the value of the other expenses, taxable income, tax, ATCF and the present worth of the after tax cash flow. The software for the environmental monitoring system can be procured through contracted services. Annual contract costs are fixed at $5,000 and other annual expenses incurred total $1,000 in real dollars. The general inflation rate is 5% and the after-tax real interest rate is 10%. The effective tax rate is 21%. What interest rate should you use to convert the After-Tax Cash Flow (ATCF) in any given year to the present worth of the ATCF? Provide the number as either a decimal or percent. Focus your analysis on EOY 3. Your use of negative signs should be consistent with of the contract cost already in the table. EOY Contract Other Expenses Taxable income Tax ATCF PW (ATCF) 3 ($5,000) Determine the value of the other expenses, taxable income, tax, ATCF and the present worth of the after tax cash flow