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1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building
1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building Investment $400,000 $300,000 $. 50,000 $200,000 Depreciation (%) 8% 10% 16% 20% 25% 10% 20% 5% - Land $100,000 150% Current Assets: - Cash & Inventory $150,000 100% The net incomes are $500,000/year for the first 2 years and $600,000/year for the last 4 years. With a total project life of 5 years and tax rate of 30%, prepare the information (table) for the before and after the tax cash flow and calculate the AE for the after the tax cash flow with a MARR of 20%. (40 points) 1.- A company wants to invest in a business with the following assets: Salvage Value(%) Fixed Assets: - Machinery -Equipment - Office equipment - Building Investment $400,000 $300,000 $. 50,000 $200,000 Depreciation (%) 8% 10% 16% 20% 25% 10% 20% 5% - Land $100,000 150% Current Assets: - Cash & Inventory $150,000 100% The net incomes are $500,000/year for the first 2 years and $600,000/year for the last 4 years. With a total project life of 5 years and tax rate of 30%, prepare the information (table) for the before and after the tax cash flow and calculate the AE for the after the tax cash flow with a MARR of 20%. (40 points)
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