Zeon, a large profitable corporation, is considering adding some automatic equipment in its production facilities. An investment of $300,000 will produce an initial annual benefit of $142,500, but the benefits are expected to decline $3,000 per year. The firm uses Straight-Line depreciation, a 4 year useful life and $45,000 salvage value. Assume that the equipment can be sold for its $45,000 salvage value at the end of 4 years. Also assume a 46% income tax rate for state and federal taxes combined. The following After-Tax Cash Flow Table has been prepared. Year Before-Tax Cash Flow Straight-Line Depreciation Taxable Income Income Taxes at 46% After-Tax Cash Flow 0 -300,000 -300,000 1 142,500 102,000 40,500 18,630 123,870 2 139,500 76,500 63,000 28,980 110,520 3 136,500 51,000 85,500 39,330 97,170 4 178,500 25,500 153,000 70,380 108,120 Is it correct? If not, why not? Group of answer choices It is incorrect. The after-tax cash flow is wrong. It is correct. It is incorrect. Wrong depreciation used. It is incorrect. The money made when the equipment is sold in not included in the last year's cash flow