QUESTION 3 Tank Ltd is considering undertaking the purchase of a new piece of equipment that is expected to increase pre-tax income (EBITDA) by $15,000 each year for the next 4 years. It costs $35,000 to purchase today and for tax purposes must be depreciated down to zero over its 5 year useful life using the straight-line method. H Tank is actually forecasting a salvage (for capital budgeting purposes) of $9,000 after 4 years, what is the machine's net cash flow (after tax) for year 4? Assume the tax rate is 30% NB: EBITDA is 'Earnings Before Interest, Taxes, Depreciation and Amortisation" 14,000 24,000 21,600 21,000