Problem 4 (20pt): A company manufactures mother boards for various computer manufacturers. Design changes in computer processors, which are expected to increase sales, will require changes in their manu- facturing operations. The cost basis of new equipment required is $500,000, and it can be depreciated using the 100%DB method. Annual revenues in real dollars are estimated to be $800,000. Annual expenses in real dollars are estimated to be $575,000. The estimated market value of equipment in actual dollars at the end the 2-year analysis period is $200,000. General price inflation is estimated at 4.9% per year, and the effective income tax rate is 40%. 2 2 1. (10pt) Fill in the blanks in the following table and explain how to obtain each value in the blank. Note that all the numbers in the table must be in actual dollars. Year BTCF dk TI Tax ATCF 0 1 2 2 2. (10pt) Calculate the nominal ERR of this project and discuss the profitability of the project when the real MARR is 8% per year