A company is considering the purchase of a capital asset for $130,000. Installation charges needed to make the asset serviceable will total $25,000. The asset will be depreciated over six years using the straight-line method and an estimated salvage value (SV) of $26,000. The asset will be kept in service for six years, after which it will be sold for $31,000. During its useful life, it is estimated that the asset will produce annual revenues of $25,000. Operating and maintenance (O&M) costs are estimated to be $5,000 in the first year. These O&M costs are projected to increase by $500 per year each year thereafter. The after tax MARR is 15% and the effective tax rate is 25% a. Compute the after-tax cash flows. b. Compute the after-tax present worth of the project, and use a uniform gradient in your formulation c. The before-tax present worth of this asset is - $81,398. By how much would the annual revenues have to increase to make the purchase of this asset justifiable on a before-tax basis? = Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. Calculate the after-tax cash flows and fill in the table below. (Round to the nearest dollar.) (C)-(A)-(B) For (A) BTCF, S (B) Depreciations Taxable income, D= -0.25(C) Income Taxes, $ (E)= (A)+(D) ATCF, $ Enter your answer in the edit fields and then click Check Answer. 8 parts o remaining Clear All Check