7 (25pt) An asset was acquired by Dave company with the following values: First cost= $20000, depreciable life=3 years, and an estimated salvage value of $4000. Initial investment is borrowed at 10% per year with repayment of an equal uniform amounts at the end of each year in 2 years. Expected gross income and expenses are $10000 and $2000 at year 1, respectively and both increase by $500 per year subsequently. The asset is actually salvaged after 3 years for $25000.

1. (4 pts)What will be the size of each payment for the $20000 debt? How much of each payment is interest and how much of each payment is principal (i.e., towards the $20000 debt)?

7 (25pt) An asset was acquired by Dave company with the following values: First cost=$20000, depreciable life=3 years, and an estimated salvage value of $4000. Initial investment is borrowed at 10% per year with repayment of an equal uniform amounts at the end of each year in 2 years. Expected gross income and expenses are $10000 and $2000 at year 1, respectively and both increase by $500 per year subsequently. The asset is actually salvaged after 3 years for $25000 A) (4 pta What will be the size of each payment for the $20000 debt? How much of each payment is interest and how much of each payment is principal (i.e., towards the $20000 debt)? year Paymenty! Interesty Principal Paymenty Remaining principal balance B) (3 pts) Calculate depreciation using MACRS BVO D(t) |d(t) c) (16 pts) Fill in all the blank cells in the below table. Show all the calculations for all gray cells to receive full credit. Je 40% tl PSGI ECFBT BV DCG CLDR TIL TCFAT Disposal Analysis: CG(3) DR(3) CL-3)= Please show your work in details for the following: E 1)= CFBT(1) CFBT43)= TI(3)= T43) CEAT(3)= C) (2 pts). Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis