Given: Item purchased for $150,000 and depreciated over 3 years to 0 SV using SL method. Revenues of $80,000 (time zero dollars) and will increase each year by general inflation rate of 5%/year (f =0.05). Expenses are $20,000 (time zero dollars) per year increasing 9% per year. Effective income tax is 50%, After Tax MARR (i sub m) is 26% per year. Life = 3 years. and work to nearest dollar. Perform an actual dollar (A$) analysis and determine the ATCF.

What interest rate would be used for discounting purposes?

I think I have complete the ATCF but am stuck on discounting purposes interest rate.