An investment of $600,000 is made in equipment that qualifies as 3-year equipment for macrs-gds depreciation. the before-tax cash flows, measured in constant dollars, for the investment consist of a uniform annual series of $200,000 plus a $200,000 salvage value at the end of the 5- year planning horizon. a 25% tax rate and 3% inflation rate apply. the real atmarr is 10%.
a. determine the after-tax cash flows, in constant dollars, for each year.
