I. An item with a 3-year MACRS property class for depreciation purposes is purchased for $30,000. It is sold at the end of 2 years for $12,000. Net annual benefits from the use of this item are $9,800 in year 1 and S15,824 in year 2 a) Fill up the following table to determine the company's after tax cash flow for this investment. Assume the company is in 22% marginal tax bracket. Further assume that income tax rates for capital gains or losses are 15%. The MACRS depreciation rates are 33.33, 44.45, 14.81 and 7.41 percent for years 1 through 4 years respectively. 12 Table Yr. Before Tax cash flow MACRS depreciation Taxable income income tax After tax cash flow 1. You bought a house for $200,000 for investment purposes. You sold the house after 4 years for $280,000. Assume that your capital gains tax is 15%. The average inflation over this time period was 3%. What is you after-tax, inflation adjusted rate of return on this investment? Show all calculations