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Class 1 2 3 4 5 6 7 8 5-Year 20% 32% 19% 12% 11% 6% - - 7-Year 14% 25% 17% 13% 9% 9%

Class 1 2 3 4 5 6 7 8 5-Year 20% 32% 19% 12% 11% 6% - - 7-Year 14% 25% 17% 13% 9% 9% 9% 4% 18. A New Machine is expected to increase EBDT by $25,000 per year for 5 years. The incremental depreciation for each year is given below. TAX RATE = .40 Year 1 2 3 4 Incremental Depreciation $30,000 $45,000 $15,000 $7000 What is the After-tax Operating Cash Flow for Year 2 (CF2)? $25,000 $27,400 $17,800 $33,000 $36,200

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