7 (25pt) An asset was acquired by Dave company with the following values: First cost=$60000, depreciable life=3 years, and an estimated salvage value of $12000. 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 $30000 and $6000 at year 1, respectively and both increase by $1500 per year subsequently. The asset is actually salvaged after 3 years for $75000. A) (4 pts)What will be the size of each payment for the $60000 debt? How much of each payment is interest and how much of each payment is principal (i.e., towards the $60000 debt)? year Payment/yr Interestyr Principal Payment/yr Remaining principal balance 0 B) (3 pts)Calculate depreciation using MACRS BV(1 D(t) d(t) 0 1 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. Tea t P S GIE CFBT BV D CG CLDR TI I CFAT Disposal Analysis: CG(3)= DR(3)= CL(3)= Please show your work in details for the following: E(1)= CFBT(1)= CFBT(3) TI(3)= T(3)= CFAT(3)= C) (2 pts).Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis i 10% In F/ PP/F AFFIA A/ PP/ AP/G | | 1.1000 0.9091 1.0000 1.0000 1.1000 0.9091 0.0000 2 1.2100 0.8264 0.4762 2.1000 0.5762 1.7355 0.8264 31 1.3310 0.7513 0.3021 3.3100 0.4021 2.4869 2.3291 4 1.4641 0.6830 0.2155 4.6410 0.3155 3.1699 4.3781 5 1.6105 0.6209 0.1638 6.1051 0.2638 3.7908 6.8618 A/G 0.0000 0.4762 0.9366 1.3812 1.8101 7 (25pt) An asset was acquired by Dave company with the following values: First cost=$60000, depreciable life=3 years, and an estimated salvage value of $12000. 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 $30000 and $6000 at year 1, respectively and both increase by $1500 per year subsequently. The asset is actually salvaged after 3 years for $75000. A) (4 pts)What will be the size of each payment for the $60000 debt? How much of each payment is interest and how much of each payment is principal (i.e., towards the $60000 debt)? year Payment/yr Interestyr Principal Payment/yr Remaining principal balance 0 B) (3 pts)Calculate depreciation using MACRS BV(1 D(t) d(t) 0 1 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. Tea t P S GIE CFBT BV D CG CLDR TI I CFAT Disposal Analysis: CG(3)= DR(3)= CL(3)= Please show your work in details for the following: E(1)= CFBT(1)= CFBT(3) TI(3)= T(3)= CFAT(3)= C) (2 pts).Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis i 10% In F/ PP/F AFFIA A/ PP/ AP/G | | 1.1000 0.9091 1.0000 1.0000 1.1000 0.9091 0.0000 2 1.2100 0.8264 0.4762 2.1000 0.5762 1.7355 0.8264 31 1.3310 0.7513 0.3021 3.3100 0.4021 2.4869 2.3291 4 1.4641 0.6830 0.2155 4.6410 0.3155 3.1699 4.3781 5 1.6105 0.6209 0.1638 6.1051 0.2638 3.7908 6.8618 A/G 0.0000 0.4762 0.9366 1.3812 1.8101