Suppose a Business Is Considering Purchasing $40,000 Machine That Will

Suppose a business is considering purchasing $40,000 machine that will result in increased sales of $30,000 per
year but also increased operating costs of $10,000; additional profits will be taxed at a rate of 50%. Depreciation
is assumed to be taken on a straight-line basis over four years with no expected salvage value. What will
happen to this project's rate of return if inflation during the next four years is expected to be 10% annually?