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2- A manufacturing equipment is to be purchased for $266000. The money will be borrowed with the stipulation that it be repaid with five cqual

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2- A manufacturing equipment is to be purchased for $266000. The money will be borrowed with the stipulation that it be repaid with five cqual end-of-year payments at interest equal to 12%. This machine is expected to provide annual revenue of $399000 for six years and is to be depreciated by the MACRS five-year recovery period. The annual operating cost is estimated to be S15000. The salvage value at the end of six years is expected to be 540000 Assume a marginal tax rate of 21% and a MARR of 17% Note: Show your detailed calculations. For example, if you depreciate a certain portion/percentage of the cost basis for any year, you need to calculate (in details) how you find that portion. Also, write the final answers for sections a, b, c of this question in the boxes. a) What is the interest payment for the loan for year I and year 2. separately Interest payment for year 1: Interest payment for year 2: b) What is the depreciation (in dollars) for year I and year 2, separately Depreciation for year 1: Depreciation for year 2: c) What is the after-tax cash flow for year I and year 2, separately Cash flow for year 1: Cash flow for year 2: > C

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