new machine costs $9,000 and is expected to have no salvage value on retire- ment. The machine will be depreciated for tax purposes in three years by the sum-of-the-years'-digits method. It is expected to generate an annual revenue of $20,000 for the next three years and to require an annual operating cost of $4,500 (excluding the depreciation of the machine). The tax rate is 40 percent. A (a) Compute the net cash flows of each year. (b) How would the net cash flow of each year be changed if the firm used the double declining-balance method