Assume you have been asked to evaluate an investment in capital equipment for the production of biofuels. The machine will cost $215,000 and it will last 10 years (useful and depreciation lifespans). Using straight-line depreciation, the salvage value for the investment is $0. You expect the equipment to have a terminal value of $20,000 at the end of the investment period. The machine has an annual maintenance cost of $6,000. Your marginal tax rate is 30%; remember that you get to keep (1-m) for everything other than the depreciation shield on an after-tax basis (it's simply m . depreciation shield). Your after tax-cost of capital (discount rate) is 9.5%. Labor costs in the production of biofuels are $17,500/year. The machine will produce 25,500 units of biofuel annually that will be sold at $2.50/unit. . Growth Discount Rate Rate Item Pre-tax After-tax Time PV. Factor Present Value $215,000.00 0.095 1.0 $215,000-$215,000 Depr 21,500 1-10 0 0.095 Shield 21,500 10 0 o.095 Term.Value 20,000 $5,649.20 Repairs -6,000 1-100 0.095 NPV -$195,223.51 NPC $195,223.51 1. After-tax annual amount-PVG/(1-(1+i)m) 1/(PV Factor). You will need the following formulas to complete the table: [1-(1+)/: (1+r) Hint: After-tax cost of repairs is calculated exactly the same as the after-tax terminal value