a). Complete the spreadsheet below by estimating the project's annual after tax cash flow.

b). What is the investment's net present value at a discount rate of 10 percent?

c). What is the investment's internal rate of return?

d). How does the internal rate of return change if the discount rate equals 20 percent?

e). How does the internal rate of return change if the growth rate in EBIT is 8 percent instead of 3 percent?

Facts and Assumptions Equipment initial cost S Depreciable life yrs. 350,000 10 Expected life yrs. Salvagevalue S Straight line depreciation so EBIT in year 1 Tax rate 28,000 38% Growth rate in EBIT 3% Discount rate 10% 6. 10 Year Initial cost 350,000 Annual depreciation 50,000 50,000 50,000 50,000 50,000 50,000 50,000 EBIT 28,000 28,840 29,705 30,596 31,514 32,460 33,433 34,436 35,470 36,534