Madeleiene has been operating a restaurant and caf in an old building downtown. Because of her cafs popularity and the cafs old kitchen, she has had trouble keeping up with demand for her famous croissants. Due to the success of her business, Madeleine has been approved for a loan of $60,000 to cover the cost of a new oven, walk-in freezer, industrial refrigerator, and industrial coffee machine. The new kitchen appliances will drastically lower her operating costs and will raise receipts by making the caf more efficient. Consequently, real net returns will increase by $14,000 per year. Madeleine has assumed an investment life of 5 years, straight-line depreciation of 8 years, an inflation rate of 2.5%, a risk premium of 2%, a required rate of return of 12%, a marginal tax rate of 24% and a real terminal value of $30,000.

[A]What is the nominal pre-tax terminal value?

a.$30,000

b.$34,778.22

c.$60,000

d.$33,942.25

[B] What is the after-tax, risk adjusted discount rate?

a.12%

b.9.12%

c.10.64%

d.7.94%

[C] What is the accumulated depreciation after 5 years?

a.$60,000

b.$30,000

c.$37,500

d.$40,000

[D]What are the tax savings from depreciation?

a.$1,428.57

b.$7,142.86

c.$7,500

d.$1,800

[E]What is the after-tax terminal value?

a.$30,000

b.$30,679.72

c.$31,196.11

d.$32,893.52

[F] What is the nominal after-tax net return in year 4?

a.$11,364.36

b.$13,000

c.$11,033.36

d.$11,744.57

[G] What is the net present value?

a.$16,985.54

b.$21,701.61

c.$8,077.89

d.$19,071.16

please write out formulas used