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6,7,8,9 pleAse 5. Vandelay Industries, an import/export company, purchased $100,000 of computers. The computers generated $50,000 in each of the next 4 years. The equipment

6,7,8,9 pleAse
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5. Vandelay Industries, an import/export company, purchased $100,000 of computers. The computers generated $50,000 in each of the next 4 years. The equipment is sold for $5,000 at the end of 4 years. Vandelay Industries uses MACRS depreciation and pays taxes at a combined rate of 45%. Complete the table. 6. What is the book value at the end of year 4 ? B4= 7. How much is the recaptured depreciation, loss, or capital gains on the sale of the asset in year 4? 8. What is the after tax rate of return? 9. Determine whether purchasing this equipment was a wise choice if the company uses an after-tax MARR of 25%. a) Yes, since After-Tax Rate of Return > MARR. b) Yes, since After-Tax Rate of Return MARR. d) No, since After-Tax Rate of Return

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