A compnay places a system for $3000000.00. It is expected to last 30 years with a salvage value of $250000.00. It will increase net income by $500000.00 in the first year, increasing 2.4% each year thereafter. The tax rate is 40%, and after tax MARR is 9%.There is some concern that the system will only last for 10 years, and must be sold off for $550000.00 at that time.
What if the before-tax cash flow for each year for 10 years?