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A company purchased office furniture for its new office branch and it will be depreciated under the MACRS with a property class of 5 years.

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A company purchased office furniture for its new office branch and it will be depreciated under the MACRS with a property class of 5 years. The furniture's cash flow is given table below. The company has an effective income tax rate of 40%, and its after-tax MARR is 15% per year. If the company plans to keep the furniture only 2 years, what would be the equivalent after-tax present worth of this investment (PW)? EOY BTCF Depr. T A TO 16000 1 7000 7000 2 11000 Depreciation amount EOY 1: Drag answer here Depreciation amount EOY 2: Drag answer here Equivalent after- tax present worth of this investment (PW): Drag answer here Book value EOY 2 The other ov z Taxable income EOY 2 Prag answer here

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