A current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of $65,000. It has been depreciated as a MACRS (GDS) five-year property-class asset. The corresponding depreciation rates are: 20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%. The present MV of the defender is $11,000. Its remaining useful life is estimated to be four years, but it will require additional repair work now (a one-time $3.800 expense) to provide continuing service equivalent to the challenger. The current effective income tax rate is 39%, and the after-tax MARR = 18% per year. Based on an outsider viewpoint, what is the after-tax initial investment in the defender if it is kept (not replaced now)? The total after-tax investment in the defender is $ . (Round to the nearest dollar.) In January of 1980, a Troy ounce of gold sold for $850 (an all-time high). Over the 28 years from 1980 to 2008, suppose the CPI has grown at a compounded annual rate of 3.2%. In 2008 a Troy ounce of gold sells for $680. a. In real terms, with 1980 as the reference year, what is the 2008 price of gold per ounce in 1980 purchasing power? b. If gold increases in value to keep pace with the CPI, how many years will it take to grow to $850 per ounce in 2008 purchasing power? c. What was the real interest rate earned from 1980 to 2008 on an ounce of gold? a. The 2008 price of gold per ounce in 1980 purchasing power is $ (Round to the nearest cent.) b. It will take years. (Round to two decimal places.) c. The real interest rate was %. (Round to two decimal places.)