A "capital investment Tug has the following current and projected cash flows during the recovery period. Using MACRS depreciation with half-year convention, what will be its book value in year three? Initial Cost ($) Revenue ($/yr) Maintenance (S/yr) Tax Rate Market Rate Inflation Rate $350,000 $150,000 $20.000 40% 5% 4% QUESTION 2 A "capital investment" Tug has the following current and projected cash flows during the recovery period. Using MACRS depreciation with half-year convention, what will be its cash flow after taxes in year three? Initial Cost ($) Revenue ($/yr) Maintenance ($/yr) Tax Rate Market Rate Inflation Rate $350,000 $150,000 $20,000 40% 5% 4%