Corp is considering investing in a new business. The projected cash inflows are $1000 per year net (after operating costs) and will run for 5 years. The capital setup cost of the business equipment is $3000 and will be financed partly by debt. The interest rate of the debt will be 15% per year provided that the loan is $1,200. The loan will be repaid in equal annual payments over 5 years. The interest component of the loan is tax deductible at year end and tax returns are processed at year end each year. Loan repayments and other cash flows are treated in arrears (i.e. at years end). The company tax rate is 30%. Remember that you can find the