(12-27 Zeon, a large, profitable corporation, is considering adding some automatic equipment to its production facilities. An investment of $120,000 will produce an annual benefit of $40,000. If the firm uses 60% bonus depreciation with the balance using 7-year MACRS depreciation, an 8-year useful life, and $12,000 salvage value, will it obtain the desired 12% after-tax rate of return? Assume that the equipment can be sold for its $12,000 salvage value at the end of the 8 years. Also assume a 28% income tax rate for state and federal taxes combined. value, and a 2-year before-tax ear before-tax payback period. uniform annual end-of-year benefits. Assume uniform an (a) Compute the before-tax rate of ret ompute the after-tax rate of return, based on MACRS depreciation and a 24% combined corporate income tax rate. (b) Compute the after-to 12 (12-27 Zeon, a large, profitable corporation, is considering adding some automatic equipment to its production facilities. An investment of $120,000 will produce an annual benefit of $40,000. If the firm uses 60% bonus depreciation with the balance using 7-year MACRS depreciation, an 8-year useful life, and $12,000 salvage value, will it obtain the desired 12% after-tax rate of return? Assume that the equipment can be sold for its $12,000 salvage value at the end of the 8 years. Also assume a 28% income tax rate for state and federal taxes combined. value, and a 2-year before-tax ear before-tax payback period. uniform annual end-of-year benefits. Assume uniform an (a) Compute the before-tax rate of ret ompute the after-tax rate of return, based on MACRS depreciation and a 24% combined corporate income tax rate. (b) Compute the after-to 12