With the provided information use excel to incorporate depreciation and taxes and model before tax cash flows and after tax cash flows in your models. Then determine the appropriate output for your model. Assume straight line depreciation. Show the before tax and after tax cash flows as well as the PV of the AFTC in each year and the NPV.

Initial Cost	$100,000
Annual Revenues	$81,155
Annual Costs (Excluding Depreciation)	$20,000
Year 3 Overhaul	$15,390
Year 6 Clean-up Costs	$17,690
Equipment Salvage/Book Value	$10,000
Useful Life	6 years
r (this was not provided in 2.3)	0.10
Tax Rate	0.35
Equipment Sold For	$20,000