As the owner of the Speedy Paving, you are planning the purchase of new equipment to meet the increased road construction. The equipment would cost $600,000 and have an expected salvage value of $700,000 after 3 years. The new equipment is projected to generate annual revenues of $800,000 and have annual operating expenses of $700,000. Depreciate the equipment using the DB method (d=10%). The before-tax interest rate is 10%. The after-tax interest rate is 5% A 50% tax rate applies to net income from operations and to the recapturing of depreciation. Th half-year rule applies You'must obtain a $300,000 loan (at a 10% rate of interest) which is repaid as follows: Repayment of loan 1 2 Percentage of loan repaid 20 30 3 50 End of Year Cash Flows Item 1 2 AA 1. Before-Tax Cash Flow 2. Annual Depreciation 3. Interest Expense 4. Taxable Income 5. Taxes Payable BB CC DD 6. After-Tax Cash Flow EE 7. Interest Expense 8. Loan Repayment 9. Cash Flow on Owner Equity FF GG 3/ The dollar value of cell FF is O 150,000 O 90,000 60,000