Assume a $40,000 investment and the following cash flows for two alternatives. Year 1 2. 3 4 5 Investment x $ 6,000 8,000 9,000 17,000 20,000 Investment Y $ 15,000 20,000 10,000 a. Calculate the payback for investment X and Y. (Do not round intermediate calculati Payback Investment 4.00 years Investment Y years Telstar Communications is going to purchase an asset for $380,000 that will produce $180,000 per year for the next four years in earnings before depreciation and taxes. The asset will be depreciated using the three-year MACRS depreciation schedule in Table 12- 12. (This represents four years of depreciation based on the half-year convention.) The firm is in a 25 percent tax bracket. Fill in the schedule below for the next four years. * Answer is complete but not entirely correct. Year 1 Year 2 Year 3 Year 4 $ $ 180,000 $ (169, 100) 10,900 $ 180,000 (56,240) 123.760 $ $ Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow 180,000 $ (126,654) 53,346 $ (18,711) X 34,635 $ 126,654 161,289 (30,931) 180,000 (28,120) 151,880 37,961 113,919 28,120 142,039 $ $ 92,830 (2,725) 8,175 169,100 177,275 $ 56,278 149, 108 $ $