3. A small business has a taxable income of $150,000. They are considering four mutually exclusive alternative models of machinery. Each machine has a 10-year life and can be sold at that time for 25% of the purchase price. The companies tax rate is 21%. (3 pts) Assume each machine is depreciated as a 5-year MACRS property. For each alternative construct the table demonstrated in class showing BTCF, DEP, BV, TAXABLE INCOME, TAX, and ATCF a. b. Calculate the after-tax rate of return for each alternative c. If your after-tax MARR is 15%, which machine should be selected? d. Re-do your calculations for part a assuming no depreciation (fully capitalized purchase as allowed in the 2018 tax code). Does your answer for part c change? Model First Cost Annual Costs $9000 25 $8000 200 $7500 300 IV $6200 600 4. The in-state cost of attending SDSMT this year (including room and board, books and supplies, and tuition and fees) is approximately $20,590. Over the period 17-year period from 1958 to 2001, the cost of a college education increased at an average of 8% per year If you assume that one of your children will attend SDSMT in 25 years from now. (1 pt) What will the cost of tuition be at that time? Assume inflation for the economy is 3% per year, express the future tuition (from a above) in today's dollars Assume that beginning 5 years from now, you wish to start saving for your child's education (4 years of school starting 25 years from now). If the return on your investments is 7% per year, what uniform amount do you need to save per month? a. b. c