Question 5 Chuck E. Chips has an expected EBIT of $160,000 every year for the next 6 years. Its annual interest is $15,000 and its tax rate is 40%. The company wants to purchase an asset that will cost $140,000 and has an installation cost of $10,000. The asset has a recovery period of 5 years. It will be the company's only asset. Calculate annual depreciation using MACRS b. Calculate operating cash flow for year 6. Interpret Calculate the company's FCF for year 6 using the values below. Interpret c. Year 5 end Year 6 end Net fixed assets $ 7,500 $ Current assets $ 90,000 $ 110,000 Accounts payable $ 40,000 $ 45,000 Accruals $ 8,000 $ 7,000