a. Complete the spreadsheet to estimate the projects annual after-tax cash flows.

b. What is the investments net present value at a discount rate of 10 percent?

c. What is the investments internal rate of return?

d. How does the internal rate of return change if the discount rate equals 20 percent? Facts and Assumptions Equipment initial cost R350,000 Depreciable life yrs. 7 Expected life yrs. 10 Salvage value R0 Straight line depreciation EBIT in year 1 R28,000 Tax rate 35% Growth rate in EBIT 3% Discount rate 10%