Question: 1) (20 POINTS) Badger Co. is considering purchasing new equipment that costs $120,000 which will yield $50,000 in annual savings in today's dollars. They plan

1) (20 POINTS) Badger Co. is considering purchasing new equipment that costs $120,000 which will yield $50,000 in annual savings in today's dollars. They plan to use this equipment for three years and then discard it at the end of its life. The cost will be depreciated using straight-line depreciation with a three-year recovery period. The inflation rate is 4%, and the tax rate is 40%. (a) (10 POINTS) Complete the table below: Cash Cash Capital Operating Flow Cash Cash Depreciation Taxable Flow Taxes before Charge Income Flow after Flow Tax Tax 0 2 3 (b) (10 POINTS) What is the before-tax and after-tax real rate of return of this investment

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=+What do you want them to think?

=+Why should they buy this product/service?

=+transit (buses, subways, taxis, etc.), new media, direct mail, or other vehicles?