A profitable corporation is considering purchasing a pickup truck for $8,000. During the truck’s fiveyear life, it is estimated to save $2,250 per year after all owning and operating costs. They can then sell the truck for $1,200 after the five years. You are interning for this corporation and they have assigned you the task of finding:
a) before tax rate of return
b) after tax rate of return using MACRS depreciation and a federal tax rate of 34%. Please provide a cash flow diagram to support your analysis and use interpolation in the rate of return