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marginal tax rate=40% cost savings = $85,000 per year five-year tax life = $200,000 estimated salvage value at the end of year nine = $20,000

marginal tax rate=40%

cost savings = $85,000 per year

five-year tax life = $200,000

estimated salvage value at the end of year nine = $20,000

annual operating and maintenance cost = $25,000 per year

lease = $45,000 per year

the lease will absorb all operating and maintenance expenses. what is the after-tax cash flow at the end of year 1?

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