ABC Corporation is considering purchasing new equipment for its manufacturing process. The equipment costs $120,000 and has a useful life of 5 years. The salvage value at the end of 5 years is expected to be $20,000. The equipment is expected to increase the annual net income by $40,000. The corporation uses straight-line depreciation and has a tax rate of 30%.

a) Calculate the annual depreciation expense for the new equipment.

b) Calculate the after-tax cash inflow for each year.

c) Calculate the payback period for the investment in the new equipment.

d) Calculate the net present value of the investment, using a discount rate of 10%.