Barbara's Body Shop is considering investing in a Kaizen training class. Training the entire workforce now incurs $100,000 in expenses. Improvement ideas will generate $50,000 annual income. Implementation expenses will cost $30,000 in year 1, 25,000 in year 2, decreasing by $5,000 per year until year 5. There are NO capital costs. The effective tax rate is 37%. A. Determine the after-tax cash flow for years 0 to 5, assuming annual income is $50,000 per year. B. Determine the after-tax rate-of-return for the cash flow in part A. If the company expects a 15% MARR on all investments, should it invest in the Kaizen program? C. Find the sensitivity of IRR to annual income for the following amounts.

$60,000 - optiistic

$50,000 - most likely

$40,000- pessimistic

D. Based on the sensitivity analysis, should the company invest in the Kaizen program? Why or why not? Solve on excel