1

2)

A small business purchases a used airplane for $1,950,000; this is considered MACRS 5-year property. The business plans to keep the plane for the next 7 years. The business estimates that the equipment would generate annual time and travel savings of $375,000 per year. At the end of 7 years, the airplane would have a salvage value of $150,000. The tax rate is 25%, the aircraft is eligible for a Section 179 deduction, and that the small business uses an after-tax MARR of 9%. Compute the PW and determine whether the business should invest in the airplane. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +5. Should the small business invest in the airplane? Elena's Caf is investing in a new commercial refrigeration unit that will cost $60,000. They estimate that the unit will produce annual revenues of $16,000 for each of the next 6 years. The refrigeration unit will have negligible salvage value at the end of the next 6 years. Assuming a tax rate of 26%, a MACRS 5-year property class, 50% bonus depreciation, and an after-tax MARR of 6%, compute the present worth of the refrigeration unit and determine whether or not Elena's Caf should invest in the refrigeration unit. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +8. Should Elena's Caf invest in the refrigeration unit? A small business purchases a used airplane for $1,950,000; this is considered MACRS 5-year property. The business plans to keep the plane for the next 7 years. The business estimates that the equipment would generate annual time and travel savings of $375,000 per year. At the end of 7 years, the airplane would have a salvage value of $150,000. The tax rate is 25%, the aircraft is eligible for a Section 179 deduction, and that the small business uses an after-tax MARR of 9%. Compute the PW and determine whether the business should invest in the airplane. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +5. Should the small business invest in the airplane? Elena's Caf is investing in a new commercial refrigeration unit that will cost $60,000. They estimate that the unit will produce annual revenues of $16,000 for each of the next 6 years. The refrigeration unit will have negligible salvage value at the end of the next 6 years. Assuming a tax rate of 26%, a MACRS 5-year property class, 50% bonus depreciation, and an after-tax MARR of 6%, compute the present worth of the refrigeration unit and determine whether or not Elena's Caf should invest in the refrigeration unit. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +8. Should Elena's Caf invest in the refrigeration unit