Alt 3: Invest $20,000, plus borrow an additional $20,000 at 8%, get income of $12,000 for 5 yrs, SL depreciation with 25,000 salvage value Try to solve at home - show after-tax cash flows Hint: interest portion of loan payment as well as depreciation is deductable from taxable income 3. Find the after-tax cash flows for the following three investment alternatives (tax rate = 40%): Alt 1: Invest $30,000, get income of $10,000 for 5 yrs, SOYD depreciation, no salvage value Alt 2: same as 1 except using SL depreciation Alt 3: Invest $20,000, plus borrow an additional $20,000 at 8%, get income of $12,000 for 5 yrs, SL depreciation with 25,000 salvage value