You are the CFO of a business and have the opportunity to evaluate two different investment opportunities. Information related to these investments follows:

	Investment 1	Investment 2
Investment Cost	$ 800,000	$ 500,000
Salvage Value	$ 40,000	$ 50,000
Useful Life	8 years	15 years
Required Rate of Return	10%	10%
Sales	$ 450,000	$ 400,000
Variable Costs	$ 150,000	$ 175,000
Fixed Costs (excluding depreciation)	$ 100,000	$ 150,000
Tax Rate	35%	35%

Your company has a required rate of return of 10% for all new investments and is subject to a tax rate of 35%.

1. Determine the annual after tax cash flow for each investment. In addition, determine the after-tax cash flow for the salvage value if you assume that the actual market value of Investment #1 at the end of eight years is $50,000 and the actual market value of Investment #2 at the end of fifteen years is $40,000.