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2. What is the ATCF rate of return for machine that costs 160,000, lasts for 5 years, has zero salvage value, and is classified as
2. What is the ATCF rate of return for machine that costs 160,000, lasts for 5 years, has zero salvage value, and is classified as 3 year MACRS property? The machine will be purchased with a 25.0% down payment and a three year loan for the remaining amount at an annual interest rate of 12.50%. The machine produces net revenues after deducting direct and indirect expenses but not depreciation of 34,000 in year 1, 69,000 in years 2 to 4, and 15,000 in year 5. Use a tax rate of 21.00% 2. What is the ATCF rate of return for machine that costs 160,000, lasts for 5 years, has zero salvage value, and is classified as 3 year MACRS property? The machine will be purchased with a 25.0% down payment and a three year loan for the remaining amount at an annual interest rate of 12.50%. The machine produces net revenues after deducting direct and indirect expenses but not depreciation of 34,000 in year 1, 69,000 in years 2 to 4, and 15,000 in year 5. Use a tax rate of 21.00%
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