For Problem 9.19 a special "Tiger Team" has identified a different use for the $\$ 60 \mathrm{~K}$ that involves an incremental profit and cash flow (before tax and depreciation allowance) of $\$ 20,000$. They are proud to have beat the other team with higher revenue. If this project were subject to net $\operatorname{tax}$ of $24 \%$, what would be the after-tax cash flow?

Data from in problem 9.19

To build out a complete set of services, a lab manager would like to add a small e-beam deposition machine that costs about $\$ 60,000$ to be more full-service to the lab customers as well as adding about $\$ 15,000$ in annual revenue to the lab. Free-cash flow is tight for the lab right now, so he was approached about leasing the system for $1 / 3$ the sale price of the machine for each of three years. Since the machine would have a market value of $\$ 10,000$ in three years, the leasing agent tells the manager he'll save money. The lab is part of a community college and is tax-free, but they do have an MARR of $12 \%$. Should they lease or buy?