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3. A telephone company is considering building a new automate switching distribution substation (two-stages installment) with a useful life of 20 years to support new

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3. A telephone company is considering building a new automate switching distribution substation (two-stages installment) with a useful life of 20 years to support new suburban developments. The substation is located in a state in which the combined tax rate is 40%, and the telephone company uses a 15% real interest MARR to assess capital investment projects. Estimated revenues and costs are as follows: Category Amount Building initial cost $1,800,000 Building salvage cost $200,000 Equipment initial cost $775,000 Equipment second cost year 2 $150,000 Equipment salvage value $34,000 Annual revenues $740,000 year 1 Revenue arithinetic gradient $30,000 years 2 to 5 Annual revenues $890,000 years 6 to 10 $925,000 years 11 to 15 $960,000 years 16 to 20 Annual operating expenses $185,000 first 10 years $240,000 years 11 to 15 $290,000 years 16 to 20 The substation will be put into service on the first day of the telephone company's fiscal year and will be disposed in December. Using MACRS depreciation, what will be the telephone company's after tax equivalent uniform annual worth for the substation? 3. A telephone company is considering building a new automate switching distribution substation (two-stages installment) with a useful life of 20 years to support new suburban developments. The substation is located in a state in which the combined tax rate is 40%, and the telephone company uses a 15% real interest MARR to assess capital investment projects. Estimated revenues and costs are as follows: Category Amount Building initial cost $1,800,000 Building salvage cost $200,000 Equipment initial cost $775,000 Equipment second cost year 2 $150,000 Equipment salvage value $34,000 Annual revenues $740,000 year 1 Revenue arithinetic gradient $30,000 years 2 to 5 Annual revenues $890,000 years 6 to 10 $925,000 years 11 to 15 $960,000 years 16 to 20 Annual operating expenses $185,000 first 10 years $240,000 years 11 to 15 $290,000 years 16 to 20 The substation will be put into service on the first day of the telephone company's fiscal year and will be disposed in December. Using MACRS depreciation, what will be the telephone company's after tax equivalent uniform annual worth for the substation

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