Problem 2. (75 points) The ABC Co. Inc. asked you to determine some of the after-tax cash flows (ATCF) for equipment used for research and development that is being considered. ABC expects the equipment to require the purchase of S250,000 worth of capital equipment (first cost) and to operate for five years. The capital equipment will have a resale value of $30,000 at the end of the 5th year. ABC plans to use the double-declining balance (DDB) depreciation method for income tax calculations. The income tax rate is 21%, and ABC uses an after- tax MARR of 8%. The equipment results in ABC's before-tax income of $60,000 each year. Answer the following questions. (a) 10 pts. Show before-tax cash flows (BTCF) from n=0 to n=5. (b) 15 pts. Calculate depreciation charges and book values each year. When necessary, adjust depreciation in light of the resale value (SV). () 10 pts. Determine taxable incomes. (d) 10 pts. Compute income taxes. (e) 10 pts. Show after-tax cash flows (ATCF). (1) 15 pts. Find either the after-tax NPW or after-tax rate of retum for this investment (g) 5 pts. Indicate if it is worth investing on this equipment. 1