Question 29 (3.5 points) Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $18,000 the first year, $20,000 the second year, $23,000 the third year, $26,000 the fourth year. $30,000 the fifth year, and $36,000 the sixth year. The project would cost the firm $78,000. If the firm's cost of capital is 15%, what is the modified internal rate of return? 18.05% 20.39% 17.02% 14.64% 19.08% Question 30 (3.5 points) You are evaluating a potential investment in equipment. The equipment's basic price is $163,000, and shipping costs will be $4,900. It will cost another $21,200 to modify it for special use by your firm, and an additional $8,200 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 29,600 at the end of three years. The equipment is expected to generate revenues of $151,000 per year with annual operating costs of $77,000. The firm's marginal tax rate is 40.0%. What is the after-tax operating cash flow for year 1? $8,891 $5,335 $74,000 $70,444 $65,109