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A company is considering the purchase of a capital asset for $135,000. Installation charges needed to make the asset serviceable will total $25,000. The asset

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A company is considering the purchase of a capital asset for $135,000. Installation charges needed to make the asset serviceable will total $25,000. The asset will be depreciated over six years using the straight-line metbod and an estimated salvage value (\$V6) of $10,000. The asset will be kept in service for six years, affer which it will be sold for $30,000. During its useful life, it is estimated that the asset will produce annual revenues of $40,000. Operating and maintenance (O&M) costs ure estimated to be 58,000 in the finst year. These O\&M costs are projected to increase by $1,200 per year each year thereafter. The after-tax MARR is 12% and the effective tax rate is 40%. What are the Values for X.Y and Z in the following table. For simplicity the Before-tax Cash flow is aven. a. $160,000,$20,000,$22,000 b. $135,000,$30,000,$0 c. $160,000,$30,000,$0 d. $135,000,$20,000,$22,000

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