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Consider a project with an initial investment of $ 6 0 , 0 0 0 , a 6 year usefule life ( and study period

Consider a project with an initial investment of $60,000, a 6 year usefule life (and study
period), and a $10,000 salvage value. You expect an annual net revenue of $15,000(before
tax), a MARR before tax of 15.3%, and an effective tax rate of 35%. The capital equipment is
to be depreciated using MACRS GDS and a 3 year class life. Develop the after-tax cash flows
and draw the cash flow diagram

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