A company has the opportunity to expand its business operations by acquiring new plant and equipment. The plant and equipment will cost $80,000 and have a useful life of 6 years. At the end of the period the plant and equipment will have a salvage value of $10,000. The Tax Office allows the company to depreciate this equipment at 30% per annum using the prime cost method (straight line). The tax rate is 30%, and is paid in the year of income. An additional working capital investment of $20,000 is also required and will be recouped in the final year of the project. Additional gross operating revenues from the investment are expected to be: Year 1 = $20,000; Year 2 = $38,000; Year 3 = $44,000; Year 4 = $36,000; Year 5 = $26,000; and Year 6 = $14,000. The company requires a rate of return on their investments of 12%.