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A company is considering the purchase of a capital asset for $110,000. Installation charges needed to make the asset serviceablo will total $30, 000 .

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A company is considering the purchase of a capital asset for $110,000. Installation charges needed to make the asset serviceablo will total $30, 000 . The asset wil be depreciated over six years using the straight-line method and an estimated salvage value (SV6) of $5,000. The asset will be kept in service for six years, after which it will be sold for $15,000. During its useful life, it is estimated that the asset will produce annual revenues of $30,000. Operating and maintenance (OsM) costs are estimated to be $6,500 in the first year. These O8M costs are projected to increase by $1,500 per year each year thereafter. The after tax MARR is 15% and the effective tax rate is 25% a. Compute the aftertax cash fiows. b. Compute the after-tax present worth of the project, and use a unilorm gradient in your formulation. c. The before-tax present worth of this asset is - $66,698. By how much would the annual revenues have to increase to make the purchase of this asset jushifiable on a beforectax basis? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. Calculate the affer-tax cash flows and fill in the table below. (Round to the nearest dollar.)

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