The answer is B but I don't understand how. Please show clearly. Thank you.

QUESTIONS11 I015 A firm is considering the purchase of a new computer for $300,000 fully installed. It is expected to have a salvage value of $100,000 after 3 years. Annual revenues from operations will be $500,000 each year and annual operating and maintenance costs $100,000. Depreciate the computer using the DB method (d=20%). The before-tax interest rate is 10%. The after-tax interest rate is 5%. A 50% tax rate applies to net income from operations and to the recapturing of depreciation. The half-year rule applies. . The firm gets a $150,000 loan at a 10% rate of interest) which is repaid as follows: Repayment of loan at the end of year Percentage of loan repaid 1 2 3 25 35 40 End of Year Cash Flows Item 2 3 1. Before Tax Cash Flow 2. Annual Depreciation 3. Interest Expense 4. Taxable Income 5. Taxes Payable 6. After Tax Cash Flow 7. Interest Expense Engineering Economics ECO 1192 Page 3 Practice Examination #2 12. The dollar value of cell BB is a)30,000 b) 54,000 c) 60,000 d) 48,000 e) None of the above answers QUESTIONS11 I015 A firm is considering the purchase of a new computer for $300,000 fully installed. It is expected to have a salvage value of $100,000 after 3 years. Annual revenues from operations will be $500,000 each year and annual operating and maintenance costs $100,000. Depreciate the computer using the DB method (d=20%). The before-tax interest rate is 10%. The after-tax interest rate is 5%. A 50% tax rate applies to net income from operations and to the recapturing of depreciation. The half-year rule applies. . The firm gets a $150,000 loan at a 10% rate of interest) which is repaid as follows: Repayment of loan at the end of year Percentage of loan repaid 1 2 3 25 35 40 End of Year Cash Flows Item 2 3 1. Before Tax Cash Flow 2. Annual Depreciation 3. Interest Expense 4. Taxable Income 5. Taxes Payable 6. After Tax Cash Flow 7. Interest Expense Engineering Economics ECO 1192 Page 3 Practice Examination #2 12. The dollar value of cell BB is a)30,000 b) 54,000 c) 60,000 d) 48,000 e) None of the above answers