Calculate MACRS depreciation and estimate the CFAT series over 4 years. Neglect any tax impact caused by the $700,000 salvage received in year 4.
After 4 years of use, Procter and Gamble has decided to replace capital equipment used on its Zest bath soap line. The equipment was MACRS-depreciated over a 3-year recovery period. After-tax MARR is 10% per year, and Te is 35% in the United States. The cash flow data is tabulated in $1000units.

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Year 1 2 3 4 Purchase, $ Gross income, S Operating expenses, Salvage, S -1900 800 950 600 300 100150200250 700