A Wal-Mart Distribution Center has put into service forklifts and conveyors purchased for $250,000. Use a spreadsheet to tabulate CFBT, CFAT, NOPAT, and i * before and after taxes for 6 years of ownership. The effective tax rate is 40%, and the estimated cash flow and depreciation amounts are shown. Salvage is expected to bezero.

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Gross Operating MACRS Year Income, S Expenses, Depreciation, $ 210,000 -120,000 -120,000 50,000 160,000 122,00080,000 28,800 28,800 2 210,000 -1 3 160,000 48,000 4 160,000 -124,000 5 160,000 -126,000 6 140,00028,000 14,400