The estimated cash flows before tax of two mutually exclusive projects are shown below. Fill up both tables by using a 3yr MACRS depreciation rule for the 10k and 8k and assets and a 35% tax rate.

p1 Year Cash Flow before Tax Book Value 3-Yr MACRS Taxable income Tax (35 %) Cash Flow After Tax 0 -10000 1 5,000 2 5,000 3 3,000 4 3,000 5 3,000

P2
Year	Cash Flow Before Tax	Book value	3 yr- MACRS	Taxable Income	Tax (35%)	Cash Flow After Tax
0	-8000
1	4000
2	5000
3	2000
4	3000
5	1300

Which Project would be preferred at MARR = 10% (After Tax) and why?

How much net revenues would P2 need to make in year 5 (instead of 1,300) in order to be economically equivalent (after Tax) to P1?