A new equipment requires an initial investment of $ 15 million, 50% of which will be financed by a loan at simple interest rate of 10%. The principal will be paid at the end of year 5. The equipment will be depreciated over 15 years to a salvage value of O using straight - line method. However, the company only needs this equipment for 10 years, and expect to sell it at the end of year 10 for $ 6 million. Revenue and expense (not including depreciation and interest account) are $ 10 million and $ 5 million, respectively. Corporate tax rate = 25%, after - tax MARR = 20%. Determine if this equipment is economically justified using PW method. Find ATCF (5), ATCF (10) and PW