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help A start-up biotech company is considering making an investment of S100,000 in a new filtration system The associated estimates are summarized below: Annual receipts

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A start-up biotech company is considering making an investment of S100,000 in a new filtration system The associated estimates are summarized below: Annual receipts $75000 Annual expenses $15.000 Useful life 8 years Terminal book value (FOY) $20.000 Terminal market value Hint: marke value below terminal book value means tax credit. 90 Straight-line depreciation will be used, and the effective income tax rate is 20%. The after-tax MARRIS 10% per year. Determine whether this investment is an attractive option for the company, Complete the end of year (EOY) cash flow table and use it to solve the problem EOY BTCF Depriciation Taxable income Income tax ATCF 0 1-8 BTCF: Before tax cash flow TCF: After tax cash flow

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