Before and After Tax Cash Flow Analysis A company wishes to install a new Statistical Process Control System requiring the outlay of project funds and investment activities details as follows: Initial Investment in Automation $250,000 Project Life : 6 years Salvage value 80,000 Annual Labor Savings: $ 150,000 Annual Additional Expenses: Labor : $40,000 Material: $ 25,000 Overhead $ 7,000 Depreciation Methods: 7 years MACRS Income Taxes Rate:39%, Capital Gains Tx: 28% MARR: 20% 1) Develop the project cash flow over its proj. life 2) Is this project justifiable at MARR of 20%? 3) What is the Internal Rate of Return of project 4) What is the Net Present Worth of this Project 5) What is Equivalent Uniform Annual Cost of Prj. 6) What is the Benefit Cost ratio of this project