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Equipment costing 110,000 will be placed in use in early July 2020 operating until early December...

Equipment costing 110,000 will be placed in use in early July 2020 operating until early December of 2023 at which time it will be scrapped. No loans are planned. Direct revenue and direct costs of the equipment is shown below. Year 2020 2021 2022 2023 Direct Revenue 28,000 45,000 65,000 50,000 Direct Cost 15,000 21,000 29,000 22,000 Using US tax methodology for depreciation of a 3 year property and income tax calculation, answer the questions below. a. What are the taxes in each year of use using a 21% tax rate? Report sign if taxes are negative. b. What is the net present worth of after-tax cash flows applying an MARR of 9.0%?

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