Some new production machinery has a first cost of $100,000 and a useful life of 10 years. Its estimated O&M costs are $10,000 the first year, which will increase annually by $4,000. The assets before tax market value will be $50,000 at the end of the first year and then will decrease by $5,000 annually. This property is a 7-year MACRS property. The company uses a 6% after-tax MARR and is subject to a combined federal/state tax rate of 40% Determine:

a) The after-tax cash flows.

b) The propertys economic service life after tax

Show your calculations.

Note: Can you please show me the step by step solution and if used an excel sheet, please provide it or email it to malzubi93@gmail.com

Thank you!