REPOST!!!!

Problem $3[35$ pts$][$Textbook Problem $12-35]$

A corporation with a $27\%$ combined income tax rate is considering the following investment in

research equipment.

Year Before$-$Tax Cash Flow

$0,-$$$7,500,000$

$1,650,000$

$2,950,000$

Prepare an after$-$tax cash flow table assuming MACRS depreciation.

$($a$)$ What is the before$-$tax rate of return?

$($b$)$ What is the after$-$tax rate of return?