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A potential investment has a cost of $555,000 and a useful life of 6 years. Annual cash sales from the investment are expected to be $201,135 and annual cash operating expenses are expected to be $79,235. The expected salvage value at the end of the investment's life is $80,000. The company uses straight-line depreciation for all assets based on the full cost of the assets.

The company has a before-tax discount rate of 16%, an after-tax discount rate of 13%, and a tax rate of 35%.

Required:

1. Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)

Calculate the before-tax annual PMT of the investment

$

Calculate the before-tax FV of the investment

$

Calculate the before-tax NPV of the investment

$

Calculate the before-tax IRR of the investment

%

2. Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. .055 = 5.5%). Enter negative amounts with a minus sign.)

Calculate the after-tax annual PMT of the investment

$

Calculate the after-tax FV of the investment

$

Calculate the after-tax NPV of the investment

$

Calculate the after-tax IRR of the investment

%