Week 4 Capital Budgeting Problem George and William Phelps are considering a ouly of s80,000 would be released at the end of the project. The equipment over the 6 years and have a salvage value of $8,000 at the end of 6 years. The project would generate before tax annual cash inflows of$38,500. The tax rate is 35% and the company's discount rate is 14%. 6 year project that would require a cash for equipment and an additional $20,000 for working capital that would be depreciated evenly Required: 1. What is the annual accounting income? 2. What is the annual after tax cash flow? 3. What is the payback based upon the initial cash outflows? 4. What is the discounted payback based upon the initial cash outflows? 5. What is the simple rate of return based upon the initial cash outflows