Question: A company purchased $50,000 worth of computer equipment for a new research contract. The equipment was purchased on January 15, 2015 and will be sold on June 1, 2017. The equipment will provide an income of $16,000 for 2015, $16,000 for 2016, and $10,000 for 2017. The company can sell the used equipment for $30,000. If MACRS depreciation is used, and the company has an incremental income tax rate of 40%, compute the after-tax cash flow for each calendar year the equipment is owned.