An investment of $120,000 with a service life of 12 years is being considered. The expected revenues are provided in the cash flow diagram below. The company would like to perform an after-tax calculation to see if the investment is a good one. The company uses an after-tax MARR of 8% and has a tax rate of 45%. The CCA depreciation rate for this type of investment is 20% and there would be a salvage value of $14,400 at the end of the 12 years. What is the after-tax future worth of the investment? Should you recommend investing?

i = 8% 35,000 11 Salvage = 14,400 25,000 Years 0 8 12 120,000