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4. Tax rate = (30+C)%, After Tax Real MARR = (10+C)%, Inflation rate = 2%. MV Taxable Income Tax ATMC 0 Year BV Depreciation Tax

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4. Tax rate = (30+C)%, After Tax Real MARR = (10+C)%, Inflation rate = 2%. MV Taxable Income Tax ATMC 0 Year BV Depreciation Tax ATMy O&M Interest MV Loss/Recapture Cost Loss $79,000 $75,000 - 1 $75,000 $72,000 $10,000 2 $66,000 $69,000 $12,000 3 $59,000 $66,000 $15,000 c. Complete the table above using Excel and determine the ATMCs in each year d. If a Challenger has a minimum EUAC of $25,000 when should the defender be replaced? 2. Jaguar Systems LLC is considering a highly specialized piece of equipment with an initial cost of $5A,000 and shipping/installation fee of $4,B00. It will be used to produce additional income of $18,300 per year. At the end of 6 years it will be scrapped for a negligible amount. The estimated annual expenses for upkeep are $2,820 every year of operation. Using MACRS 7 years, 21% tax rate, and After-Tax MARR of 12%, a. Calculate the NPW after taxes, b. Is it a good investment? Tax rate = (30+C)%, After Tax Real MARR = (10+C)%, Inflation rate = 2%. Taxable Income Tax ATMC Year MV BV Depreciation Tax Army O&M Interest MV Loss/Recapture Cost Loss 0 $79,000 $75,000 - 1 $75,000 $72,000 $10,000 2 $66,000 $69,000 $12,000 3 $59,000 $66,000 $15,000 c. Complete the table above using Excel and determine the ATMCs in each year d. If a Challenger has a minimum EUAC of $25,000 when should the defender be replaced

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