B A 2 Investment Cost 3 Salvage Value 4 Useful Life (years) Investment 1 Investment 2 $ 900,000 $ 600,000 $ 90,000 $ 60,000 9 12 $ $ 10% 500,000 $ 200,000 $ 100,000 $ 35% 10% 500,000 240,000 120,000 35% $ 500,000 5 Annual Depreciation 6 Required Rate of Return on Investments 7 Sales 8 Variable Costs 9 Fixed Costs (excluding Depreciation) 10 Tax Rate 11 12 Income Statement: 13 Sales 14 Variable Costs 15 Contribution Margin 16 Fixed Costs (excluding Depreciation) 17 Depreciation 18 Earnings Before Taxes 19 Taxes 20 Earnings After Taxes 21 22 23 Annual After-Tax Cash Flow 24 Earnings After Taxes 25 Depreciation 26 Annual After-Tax Cash Flow 27 28 29 After-Tax Cash Flow For Salvage Value Academic Honesty Question 1 Ready Schedule of Investment Cash NPV Q2 . IRRC