1- Consider the purchase of a $10,000 capper, a three year asset, in year zero and its sale in year four for $2,000. Show in the table below, the pre-tax cash flow, depreciation, tax savings from depreciation, gains tax, and after tax cash flow with a tax rate of 20%

2- Consider a $10,000 at 5% per year that you take out in year zero. The loan has three annual payments in years one through three.

In the table below show, the payments, the interest expense, principal payments, balance remaining, tax savings, and after tax cash flow.

Assume a tax rate of 50%.