Assume everything is Riven in CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools at a cost of $60,000. The purchase is expected to generate revenues of $18,000 (this is an n=0 value), increasing by 10% each year directly (and only) due to increased efficiency. Also, the purchase of the tools will lead to increased operating costs of $4,000 per year in each of the next three years. Additional profits will be taxed at a rate of 40%. The asset falls into CCA Class 45 (rate = 20%) for tax purposes and the 50% rule applies. The project has a three-year life. The constant-dollar market (re-sale) value of the machine tools is expected to fall by 25% annually fie. Resale value at n=l would be 45,000 in constant dollars). The machine tools will be purchased 75% on debt (75% of the cost will be borrowed). The debt will be paid off in equal annual payments over the life of the project. The interest rate on the debt was negotiated at 12% annually. The general inflation rate is 7% per year (and affects everything that it normally affects). Assume a MARR' = 5%. (Remember to round up/down to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. The figures in the following questions are all dollar values unless stated otherwise. The disposal tax effect in constant dollars is in which range? a) (1150) to (1170) b) 1170 to 1190 c) 1190 to 1210 d) (1210) to (1230) e) None of the above