A company purchases an asset that costs $21,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 39% income tax rate. (Use Table 1. Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. Complete this question by entering your answers in the tabs below. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. (Do not round intermediate calculations. Round all dollar amounts to 2 decimal places.) A company purchases an asset that costs $21,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 39% income tax rate. (Use Table 1, Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. Complete this question by entering your answers in the tabs below. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. (Round your answers to 2 decimal places. (i.e. 0.1234=12.34% ).) A company purchases an asset that costs $21,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 39% income tax rate. (Use Table 1. Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. Complete this question by entering your answers in the tabs below. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. (Do not round intermediate calculations. Round all dollar amounts to 2 decimal places.) A company purchases an asset that costs $21,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 39% income tax rate. (Use Table 1, Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 39%, is $7,057. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. Complete this question by entering your answers in the tabs below. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $8,190 ? Use the Goal Seek function of Excel. (Round your answers to 2 decimal places. (i.e. 0.1234=12.34% ).)
