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10 pts. Problem 3. a). In 2016, UDM bought a mainframe computer with $3 mil, life of this computer is 3 years and salvage value

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10 pts. Problem 3. a). In 2016, UDM bought a mainframe computer with $3 mil, life of this computer is 3 years and salvage value $ 200,000 in 2019. Net benefits from this system are S220,000, $242,000, and $266,200 in year 2017, 2018, and 2019 respectively. Do you think BTROR for UDM is higher than 12%? No it will not be higher than 12% b). In part (a), if we consider tax rate is 34%, Do you think ATROR (with Straight Line depreciation) is higher than 10%. Yes. it is higher than 10% Year f te b-d Te. . 6- BTCF phie or TE TI 20) ATCE ATC 0 -3000,000 220,00093299 by ow) 715 - 6000 - 31394-491 2003527 867723 2 243,00 133 213 15.91-92-491933 -20% -3053477053 TLOG 3 21620023,930 363, 0142- pouce-158 Us -156 43936003034 Solution for at - 3000.000 - 200,000(96; 1) + 343,000(84;,a) + 366300(%,; 3)-200 =-232,158,44 for b: 3000000 Duoop 1) 34, bou (3) 300: 37090 = 10% -2,200,013.44

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