Problem
A computer costing $32,000 will be written off, using MACRS, by a small firm whose tax rate is 15%. Annual operating costs are $8000 for 9 years, after which there will be no salvage value.
(a) What are the after-tax cash flows without Section 179?
(b) What are the after-tax cash flows with Section 179?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.