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An opportunity Project A, lasting 4 years, requires to buy an asset with initial cost P = $9,000. MARR= 10%. (a -10 pts) Fill up

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An opportunity Project A, lasting 4 years, requires to buy an asset with initial cost P = $9,000. MARR= 10%. (a -10 pts) Fill up the table using a 3-yr MACRS depreciation method (see tables). Assume a 30% tax rate on the taxable income Year Before Tax Book value | 3-yr MACRS | Taxable | Tax 30% After Tax Cash Flow (BV) Cash Flovw 0-9,000 4,000 25,000 3 2,000 45,000 Depreciation ncome After Tax IRR = (b - 4 pts) What is the After Tax B/C ratio of this project? (c -2 pts) What is the After Tax PW(@MARR) of this project? (d-2 pts) What are the After Tax Pwl@1-0) and After Tax Pwl@1 = oo) for this project? (e - 2 pts) What is the After Tax Payback Period of this project? (f - 4 pts) Another opportunity Project B has the following After Tax Cash Flow, which project would you choose among A and B? Why? Project B After Tax Cash Flow Year 9,000 4,200 1,800 3,000 (g -2 pts) If you could, would you invest in the other Project too? Why? 4 5,500 After Tax IRR = (h-2 pts) If an inflation rate,f-396/year is expected for the future, what would be the After Tax deflated (real) IRR of Project A? (i - 2 pts) What would be the real (deflated) After Tax Cash Flow transaction in year 2 of Project A, assuming the same inflation rate 3%/yr

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