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1- Keld: www your work regarding questions 1,2,3,4 for partial credit! (25 ta (25 pts) A next generation Al company which is in the 40%
1- Keld: www your work regarding questions 1,2,3,4 for partial credit! (25 ta (25 pts) A next generation Al company which is in the 40% combined tax bracket wants to purchase a quantum computer (5-year MACRS asset) that will bring benefits of $20,000 in Year 1. 30,000 in Year 2, $25,000 in Year 3. and $20,000 in Year 4. The computer will be sold at the end of Year 4 at 25% of its purchase price. What is the maximum computer purchase price the company can pay if its after tax MARR is 20%? Use MACRS depreciation. (Hint: construct a table having year, before-tax cash flow, depreciation. taxable income, tax, after-tax cash flow columns, have years 0,1,2,3,4)
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