Tax Credits, Tax Deductions and Cash Flow Diagram] There is no inflation. It is currently Year 6. From Year I to Year 5, Anaya ran a very simple before-tax MARR is 10% per year. Her is t-20%. That From Year 1 to Year 5, Anava ran a very simple business. Anaya's after-tax MARR is 8% per year. The relevant tax rate for Anaya's business tax on its taxable income. There are no depreciable assets to worry is, Anaya's business paid 20% about (so no capital cost allowances, depreciation, etc.) The cash flows and tax breaks for Anaya's business were as follows: (Anaya's business opened at the start of Year 1.) Year 1: Revenue of $2,000 and Costs of $1,000 Year 2: Revenue of $2,000, Costs of $1,000 and a tax deduction of $500. Year 3: Revenue of $2,000, Costs of $1,000 and a non-refundable tax credit of $250 Year 4: Revenue of $2,000, Costs of $1,000 and a refundable tax credit of $500 Year 5: Revenue of $2,000, Costs of $1,000 and a tax deduction of $1,500. (Anaya's business closed at the end of Year 5.) a. (5 marks) Using the timeline below, draw a cash flow diagram for Anaya's business. (Hint: If you pay $100 in taxes, that's a negative cash flow of$100.) 4 work. Kee b. (5 marks) Calculate the after tax Net Present (Year 6) Value of Anaya's business. Show your in mind it is currently Year 6, so Anaya's business is in the past. Year 6, not Year 0, is the present. After Tax Net Present Value (Year 6 Value) of Anaya's business: $ Work