A new renewable energy company, CleanTech, is building its first plant in the Tampa Bay area where algae farins will turn sunlight into automotive biofuel. Selena, an IE working for CleanTech, has been tasked to evaluate 2 different mutually exclusive plans with a 15-year horizon (analysis period). CleanTech seeks a MARR of 12.89. The federal corporate income tax rate is 21.00%, and Florida's state corporate Income tax rate is 3.535%. Determine the best course of action for CleanTech Plan A: This plan will yield 6.4 million gations of biofuel per year. Initially, the green technology Equipment A (a 5-year property class, but a useful life of 15 years) will cost $2.5 million plus installation costs of $125,000. Equipment A will receive a 40% bonus depreciation in Year 1. First-year annual operating costs will be $22.5 million and increase each year after that by $250,000. This plan will produce biofuel worth $38.9 million in revenue the first year and will increase in revenue by 9% each year thereafter. Plan : This plan will yield 8.4 million gallons of biofuel per year. Initially, the green technology Equipment B (a 5-year property class, but a useful life of 15 years) will cost $1.5 million plus installation costs of $325.000. Equipment B will receive a 40% bonus depreciation in Year 1. First-year annual operating costs will be $33.5 million and increase each year after that by $150,000. This plan will produce biofuel worth $457 million in revenue the first year and will increase in revenue by 9% each year thereafter, Answer the following questions in your Excel file: 01) Calculate the combined incremental tax rate. Show your work. Q21 Calculate the value of the bonus depreciation for both Equipment A and Equipment 8. Then, calculate the new Cost Basis for both Equipment A and Equipment that will be subject to MACRS depreciation. Show your work for both Equipment A and Equipment B. 03) In a table, determine the After-Tax Cash Flow for Plan A Be sure to include and/or calculate: 1) Before-Tax Cash Flow (untaxed and taxable), 2) Bonus Depreciation. 3) MACRS % Rates, 4) MACRS Depreciation, 5) Taxable income, 6) Income Taxes use combined incrementat tax rate), and 71 Atter-Tax Cash Flow as vertical columns Q4) in a table, determine the After-Tax Cash Flow for Plan B. Be sure to include and/or calculate: 1) Before-Tax Cash Flow (untaxed and taxable), 2) Bonus Depreciation, 3) MACRS % Rates, 4) MACRS Depreciation. 5) Taxable income, 6) Income Taxes (use combined incremental tax rate), and 7) After-Tax Cash Flow as vertical columns Q5) Which Plan should CleanTech choose according to After-Tax Present Worth Analysis? WHY? You must show all calculations and explain to receive full credit 06) Which Plan should CleanTech choose according to After-Tax Annual Cash Flow Analysis? WHY? You must show all calculations and explain to receive full credit Q7) Which Plan should CleanTech choose according to After-Tax Rate of Return Analysis? WHY? You must show all calculations and explain to receive full credit A new renewable energy company, CleanTech, is building its first plant in the Tampa Bay area where algae farins will turn sunlight into automotive biofuel. Selena, an IE working for CleanTech, has been tasked to evaluate 2 different mutually exclusive plans with a 15-year horizon (analysis period). CleanTech seeks a MARR of 12.89. The federal corporate income tax rate is 21.00%, and Florida's state corporate Income tax rate is 3.535%. Determine the best course of action for CleanTech Plan A: This plan will yield 6.4 million gations of biofuel per year. Initially, the green technology Equipment A (a 5-year property class, but a useful life of 15 years) will cost $2.5 million plus installation costs of $125,000. Equipment A will receive a 40% bonus depreciation in Year 1. First-year annual operating costs will be $22.5 million and increase each year after that by $250,000. This plan will produce biofuel worth $38.9 million in revenue the first year and will increase in revenue by 9% each year thereafter. Plan : This plan will yield 8.4 million gallons of biofuel per year. Initially, the green technology Equipment B (a 5-year property class, but a useful life of 15 years) will cost $1.5 million plus installation costs of $325.000. Equipment B will receive a 40% bonus depreciation in Year 1. First-year annual operating costs will be $33.5 million and increase each year after that by $150,000. This plan will produce biofuel worth $457 million in revenue the first year and will increase in revenue by 9% each year thereafter, Answer the following questions in your Excel file: 01) Calculate the combined incremental tax rate. Show your work. Q21 Calculate the value of the bonus depreciation for both Equipment A and Equipment 8. Then, calculate the new Cost Basis for both Equipment A and Equipment that will be subject to MACRS depreciation. Show your work for both Equipment A and Equipment B. 03) In a table, determine the After-Tax Cash Flow for Plan A Be sure to include and/or calculate: 1) Before-Tax Cash Flow (untaxed and taxable), 2) Bonus Depreciation. 3) MACRS % Rates, 4) MACRS Depreciation, 5) Taxable income, 6) Income Taxes use combined incrementat tax rate), and 71 Atter-Tax Cash Flow as vertical columns Q4) in a table, determine the After-Tax Cash Flow for Plan B. Be sure to include and/or calculate: 1) Before-Tax Cash Flow (untaxed and taxable), 2) Bonus Depreciation, 3) MACRS % Rates, 4) MACRS Depreciation. 5) Taxable income, 6) Income Taxes (use combined incremental tax rate), and 7) After-Tax Cash Flow as vertical columns Q5) Which Plan should CleanTech choose according to After-Tax Present Worth Analysis? WHY? You must show all calculations and explain to receive full credit 06) Which Plan should CleanTech choose according to After-Tax Annual Cash Flow Analysis? WHY? You must show all calculations and explain to receive full credit Q7) Which Plan should CleanTech choose according to After-Tax Rate of Return Analysis? WHY? You must show all calculations and explain to receive full credit