A company is considering to invest 375,000 Euro in a new machine, that will cause a positive contribution margin (CM) of 105,000 Euro in the first year, but afterwards, the CM will decrease with 3,300 Euro annually. Other operational costs are 8,880 Euro annually, which will increase with 14% every year. The machine lifetime is ten years, it will be sold for book value at this point of time (scrap value). Consider an after-tax discount rate of 10%. Depreciation is calculated using the declining-balance method at 18% per year and the company estimates a tax rate of 22% during the coming ten years. A. Determine before-tax cash flows, tax base (EBT), tax and after-tax cash flows. B. Construct a bar-chart for the cash flows before tax and the cash flow after tax C. Determine the NPV, IRR and annuity value with both before and after-tax considerations. A company is considering to invest 375,000 Euro in a new machine, that will cause a positive contribution margin (CM) of 105,000 Euro in the first year, but afterwards, the CM will decrease with 3,300 Euro annually. Other operational costs are 8,880 Euro annually, which will increase with 14% every year. The machine lifetime is ten years, it will be sold for book value at this point of time (scrap value). Consider an after-tax discount rate of 10%. Depreciation is calculated using the declining-balance method at 18% per year and the company estimates a tax rate of 22% during the coming ten years. A. Determine before-tax cash flows, tax base (EBT), tax and after-tax cash flows. B. Construct a bar-chart for the cash flows before tax and the cash flow after tax C. Determine the NPV, IRR and annuity value with both before and after-tax considerations