that is all the information.

9-1. A $126,000 investment in machinery is proposed. It is anticipated that this investment will cause a reduction in net operating disbursements of $34,000 a year for 8 years. The investment will be depreciated for income tax purposes by the years-digits method using an 8-year life and zero salvage value. The forecast of zero salvage value is also to be used in the economy study. The applicable income tax rate is 40%. What are the prospective rates of return before and after income taxes? (Ans. 21.3%, 14.6%) g 2