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A firm can purchase a centrifugal separator (5-year MACRS property) for $20,000. The estimated salvage value is $2,500 after a useful life of six years.

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A firm can purchase a centrifugal separator (5-year MACRS property) for $20,000. The estimated salvage value is $2,500 after a useful life of six years. Operating and maintenance (O&M) costs for the first year are expected to be $2,000. These O&M costs are projected to increase by $500 per year each year thereafter. The income tax rate is 29% and he MARRIS 1 1 % after taxes. What must the uniform annual benefits be or the urchase of the centrifuga separatorto e economica on an after ax as Click the icon to view the GDS Recovery Rates (s) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when he MARR is 11% per year. The uniform annual benefits should be (Round to the nearest dollar.)

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