1. What is the after-tax present worth of a chip placer if it costs $75,000 and saves $23,000 per year? The after tax interest is 10%. Assume the device will be sold for $7500 salvage value at the end of its 6 year life. Assume the chip placer falls under CCA Class 8. The corporate income tax rate is 54%. Check your results with Excel functions and attached the output to your assignment. (5 marks) 2. DigCo is considering the purchase of a backhoe for the pipeline contracting firm. The machine will cost $110,000, last six years with a salvage value of $20,000, and reduce annual maintenance, insurance, and labour costs by $30,000 per year. The after tax MARR is 9% and DigCo's corporate tax rate is 55% (a) What is the exact after tax IRR for this investment? (5 marks) (b) Should DigCo buy the backhoe? (2 marks) 1. What is the after-tax present worth of a chip placer if it costs $75,000 and saves $23,000 per year? The after tax interest is 10%. Assume the device will be sold for $7500 salvage value at the end of its 6 year life. Assume the chip placer falls under CCA Class 8. The corporate income tax rate is 54%. Check your results with Excel functions and attached the output to your assignment. (5 marks) 2. DigCo is considering the purchase of a backhoe for the pipeline contracting firm. The machine will cost $110,000, last six years with a salvage value of $20,000, and reduce annual maintenance, insurance, and labour costs by $30,000 per year. The after tax MARR is 9% and DigCo's corporate tax rate is 55% (a) What is the exact after tax IRR for this investment? (5 marks) (b) Should DigCo buy the backhoe? (2 marks)