Problem 2: (15 points) For the following cash flow table, calculate the after-tax nominal and real rate of return. Depreciation is straight line over five years. Consider the marginal tax rate to be 39% and inflation rate to be 6%. Year 0 1 2 3 4 5 Cash flow, $ -1000 300 350 400 450 500 200 (Salvage) 26 Problem 3: (10 points) a) Give two examples of descriptive models. b) Give two examples of prescriptive models. c) Give two examples of deterministic models. d) Give two examples of stochastic models