Inputs Project life (years) 4 Salvage values $0 Inflation rate 3.8% Income tax rate 40% MARR (market) 20% Analysis Year 0 Real$ Actual$ Straight-line Taxable Depreciation Income After-tax Tax Cash Flow NPV EUAW IRR 1 234 First, estimate the arithmetic gradient Real$ cash flows. Then estimate the Actual$ Real$ (1+0.038)^Yr. then estimate annual depreciation charges. Research equipment is GDS 5-year property. Final year depreciation charge = VDB()*0.5 for half year convention. include depreciation loss in year 4 taxable income.