E15-42. Payback; ARR Kurt's Office Services is evaluating the purchase of a state-of-the-art desktop LO2, 10 publishing system that costs $40,000, has a six-year life, and has no salvage value at the end of WO its life. The company's controller estimates that the system will annually generate $15,000 of cash receipts and create $3,000 of cash operating costs. The company's tax rate is expected to be 30 percent during the life of the asset, and the company uses straight-line depreciation. kando Determine the annual after-tax cash flows from the project. b. Determine the after-tax payback period for the project. (Round to one decimal point.) Determine the after-tax accounting rate of return for the project. (Assume tax and financial accounting depreciation are equal.) (Round to one decimal point.) a. c