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A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in the

A piece of newly purchased industrial equipment costs $745,000 and is classified as seven-year property under MACRS. The MACRS depreciation schedule is shown in the MACRS Table. Fill in the following table. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank. Enter "0" when necessary.)

Year Cash Flow
0 $ 32,000
1 14,700
2 17,000
3 12,100
a.

What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b. What is the NPV at a discount rate of 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the NPV at a discount rate of 21 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
d.

What is the NPV at a discount rate of 30 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

image text in transcribed

Property Class 5-Year Year 3-Year 7-Year 33.33% 44.45 14.81 7.41 20.00% 32.00 19.20 11.52 11.52 5.76 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4.46

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