Please Fill in the the Grey, All other areas is solved.

$3.$ After$-$tax cash flow from selling the equipment at the end of the $5$ years.

Market Value

Book Value

Gain$/$Loss

Tax Increase$/$Decrease

Pre$-$tax Cash Flow

Tax Increase$/$Decrease

After$-$tax Cash FlowKeenan Music $--$ Capital Budgeting Case

The CEO for Keenan Music has been approached about the opportunity to make specialized guitars for famous musicians for the

next $5$ years. However, the current plant does not have the capacity to produce any new products. Therefore, in order to pursue

this opportunity, Keenan Music will need to purchase additional production space, new equipment and hire additional

employees. The CEO believes that this is a good investment, but needs to get the plant manager on board as he will be

responsible for all three product lines, acoustic, electric and specialty. The accountant has gathered all the necessary

information about the specialty guitars project as follows.

Initial Investment:

Cost of Building

Cost of Equipment

Total Initial cost of Investment

Annual Revenues and Costs:

$\backslash$table$[[$Sales Revenues,$$,645,000],[$Cash Variable Expenses,$$,240,000],[$Cash Fixed Expenses,$$,100,000],[$Depreciation Expense,$$,56,000]]$

$\backslash$table$[[$Keenan$\text{'}$s Discount Rate,$15\%$