PLEASE DO NOT USE MICROSOFT EXCEL, handwritten or with steps without using a program.

6. The Shellout Corp. owns a piece of petroleum drilling equipment that costs $100,000 and will be depreciated over 10 years by double declining balance depreciation. There is combined 40% tax rate. Shellout will lease the equipment to others and each year receive $30,000 in rent. At the end of 5 years, the firm will sell the equipment for $35,000. What is the after-tax rate of return Shellout will receive from this equipment investment