Question: SlamCo is considering a project to develop artificial intelligence for the financial industry. The AI module will search historical patterns through past financial crises to

SlamCo is considering a project to develop artificial intelligence for the financial industry. The AI module will search historical patterns through past financial crises to try to avoid the next financial crisis. The first cost is $3,000,000. The annual savings for SlamCo will be $700,000 with the salvage value of $20,000 after 6 years. SlamCo's tax rate is 42% and its after tax MARR is 15%. (a) Draw the cash flow diagram for this project.

(b) Calculate the approximate after tax IRR.

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