Afirm may invest in equipment that will be depreciated by double declining balance depreciation with conversion to straight-line depreciation in year 5. For depreciation purposes a $700,000 salvage value at the end of 6 years is assumed. But the actual value is thought to be $1,000,000 and it is this sum that is shown in the before-tax cash flow. Before-Tax Cash Flow (in $1000) -$12000 1727 2414 2872 3177 3358 1997 1,000 salvage value If the firm wants a 9% after-tax rate of return and its combined incremental income tax rate is 24%, determine by annual cash flow analysis whether the investment is desirable