First cost of equipment - $150,000 Market value at the end of year 6-$30,000 MACRS depreciation is used. The equipment is a 5-year property. Combined income-tax rate for the company-35% Year 0 1 3 4 5 6 BT-CF in $ -150K 60K 63K 66K 69K 72K 75K O&M 10K 13K 16K 19K 22K 25K Expenses Helens Case Stuly 12 The first-year after tax-cash flow is O $33,000 O $27,000 $43,000 O $53,000