A firm can purchase a centrifugal separator (5-year MACRS property) for $19,000. The estimated salvage value is $3,200 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $1,900. These O&M costs are projected to increase by $1,500 per year each year thereafter. The income tax rate is 22% and the MARR is 14% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? Click the icon to view the GDS Recovery Rates ("k) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year. The uniform annual benefits should be $ ((Round to the nearest dollar.) Year 1 2 3 4 01 6 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-yeara 5-yeara 7-yeara 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 7 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 8 9 10 11 12 13 14 0.0295 516 1 17 0.0446 0.0446 0.0446 0.0446 18 19 N 1 2 3 Discrete Compounding; i = 14% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.1400 0.8772 1.0000 0.8772 1.0000 1.2996 0.7695 2.1400 1.6467 0.4673 1.4815 0.6750 3.4396 2.3216 0.2907 1.6890 0.5921 4.9211 2.9137 0.2032 1.9254 0.5194 6.6101 3.4331 0.1513 2.1950 0.4556 8.5355 3.8887 0.1172 2.5023 0.3996 10.7305 4.2883 0.0932 2.8526 0.3506 13.2328 4.6389 0.0756 3.2519 0.3075 16.0853 4.9464 0.0622 3.7072 0.2697 19.3373 5.2161 0.0517 N Capital Recovery Factor To Find A Given P A/P 1.1400 0.6073 0.4307 0.3432 0.2913 0.2572 0.2332 0.2156 0.2022 0.1917 4 5 6 7 8 9 10 A firm can purchase a centrifugal separator (5-year MACRS property) for $19,000. The estimated salvage value is $3,200 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $1,900. These O&M costs are projected to increase by $1,500 per year each year thereafter. The income tax rate is 22% and the MARR is 14% after taxes. What must the uniform annual benefits be for the purchase of the centrifugal separator to be economical on an after-tax basis? Click the icon to view the GDS Recovery Rates ("k) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year. The uniform annual benefits should be $ ((Round to the nearest dollar.) Year 1 2 3 4 01 6 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-yeara 5-yeara 7-yeara 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 7 20-yearb 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 8 9 10 11 12 13 14 0.0295 516 1 17 0.0446 0.0446 0.0446 0.0446 18 19 N 1 2 3 Discrete Compounding; i = 14% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F F/P P/F FIA PIA A/F 1.1400 0.8772 1.0000 0.8772 1.0000 1.2996 0.7695 2.1400 1.6467 0.4673 1.4815 0.6750 3.4396 2.3216 0.2907 1.6890 0.5921 4.9211 2.9137 0.2032 1.9254 0.5194 6.6101 3.4331 0.1513 2.1950 0.4556 8.5355 3.8887 0.1172 2.5023 0.3996 10.7305 4.2883 0.0932 2.8526 0.3506 13.2328 4.6389 0.0756 3.2519 0.3075 16.0853 4.9464 0.0622 3.7072 0.2697 19.3373 5.2161 0.0517 N Capital Recovery Factor To Find A Given P A/P 1.1400 0.6073 0.4307 0.3432 0.2913 0.2572 0.2332 0.2156 0.2022 0.1917 4 5 6 7 8 9 10