+ A Read aloud y Draw Highlight WHEESECE TURU Chapter 5, 6, & 11 Questions, Ethics, OSHA, and Madan FG5.12 Alan owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume his exemptions and deductions are $10,000/year for all 6 years. Also, assume that Alan has just purchased a 5-year class concrete mixer for $100,000. The tax and MACRS depreciation tables attached. Alan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $200.000 $210.000 $220,000 $230,000 $240,000 $250,000 Income Deductions Depreciation Taxable Income Tax Paid Calculate the Taxable income in Year I through 6. assuming the MACRS depreciation on the attached, and calculate her yearly taxes, assuming she is single Taxpayer. Highlight + A' Read aloud | Draw 1. The Middlesex County Engineering Department needs to repair the Brainerd Lake Dam in Cranbury NJ which had a similar repair (RipRap, stone facing, and spillway repair Fig. 1) done in 2000 for approximately $46,771.23. They would like to estimate this to a future value cost for this year 2020 assuming a safe discount rate of 6% over that period. They added an additional 1/3 to this estimated cost and plan to do a bond offering for that amount. A broker would like you to bid on this bond: = P(F/pin) It has a 10 year bond term with a face value (maturity value) MV (you calculate) 5% per year coupon rate paid annually You require an 8% ROR What would you bid (offer to pay) for the offered bond today present worth to achieve 8%. V= 3 *(1+) P=1(%in)+F(ption) See attached interest tables Fig. 1 Brainerd Lake Dam Cranbury V + 3 A Read aloud l Draw 15) How would your bid offer differ if the 5% per year coupon rate was paid quarterly? Highlight FG 13. Benefit Cost Analysis Question : Analysis Alternative A & Alternative Busing Excels built in formulas and determine which Alternative is acceptable for the given MARR. Question 2: What MARR would cause your answer the switch? Benefit Cost Ratio: B/C Present Worth Benefits Present Worth Costs Equivalent uniform annual benefits/ Equivalent uniform annual costs MARR Min. Acceptable Rate of Return if Benefit Cost (B/C) ratio > I then deem higher cost alternative acceptable if Benefit Cost (B/C) ratio 1 then deem lower cost alternative acceptable Given Information: n. MARR 5 8.00% Present Value Costs & Benefits Alt. B-A Cost Annual rev Annual rev= Annual rev Annual reva Annual rev> Years 0 1 2 3 4 5 Alt. A Alt. B ($840,000) ($900,000) $280,000 $560,000 $280,000 $240,000 $280,000 $200,000 $280,000 $200,000 $280,000 $200,000 (B/C) $0.00 $0.00 C:/Users/jakou/Downloads/Homework%20Assignment%204%20CE-210-001%20F20.pdf - + A Read aloud | Draw Hic PAF NA AP AG 33 LIS 25771 MF 100 0.40 . GO 3019 220 OVER www CO ISO Factor Table-2.00% PAG FP FIA TO LODE 0.83 L14 20 2440 1.2507 33464 LASE MOS 4.5061 731724 10:5213 HO TU 10.16 1. 12:47 . HU 16.6 2.51 TWI 180653 3.TIME 21 14735 1972 3414 CANT um 11.11 34 700 2021 4AN 304 $70 6300 4.7101 TI 0.13 01121 10 LS 2.27 2011 OM 1921 170 1601 11.00 31 OSTI CD 461 2.18 w OVE CUTE LE MO IND LO 2007 TE ROSE 100 LED TU 004 GI ER 5.231 6145 GA OCES OD 905 BERS DOS BOSTE COSTE CIRO Wor 200 23 WOWEGO 0.02 0367 CAP OM 414 10 TO RII 16 100 10TH 45.7.30 0403 18000 Srce wo 10 RO 73000 7502 MO O COM 17 LE VW MO LE 19 ARRERS NE WO SITE 4930 136 100 71 OD Wor was CHIES 131 140 TIES BOR LIVE Factor Table 6.00% F4 PE P/A ! 11 IRI FI THEY WE HE 22 CHE 18 SI BER 14 1 111 an 1 AT Twe THE 20-yoor 3.750X 7-210 6.677 5.177 5.713 Table A-1. 3., 5., 7., 10., 15., and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-your 10-year 16-year 1 33.33% 20.00 14.29% 2. 5.00% 44.45 10.00% 32.00 24.40 18.00 9.50 14.81 19.20 17.40 1440 8.38 7.41 11.52 12.40 11.52 7.70 11:52 8.00 5.76 8.92 7 7.37 0.23 8.98 6.56 5.00 4.46 6.55 5.90 10 6.50 5.91 6.55 5.00 11 12 3.28 5.00 5.91 15 5.90 5.01 16 17 2.95 18 10 20 5.255 4.838 4.522 4.402 4. 4,402 4,451 4.42 4.461 400 151 21 TABLE 6.2 Tax Table for Single Taxpayers, 2015 Taxable income of Single Taxpayers From This 37.451 90.751 189.00 411 SOL 412201 9.225 31.450 90.750 189.300 411.500 413.200 Above 102 5922.50 +159 of amount over $9.223 55.156.25.25 of amount over $37.450 S18.48125+ 28 of amount over $90.750 5:46.075 25 15 ramunt over $189.100 $119.401 25 of amount over $41500 $119.996.25 196 of amouer 5413.200 + A Read aloud y Draw Highlight WHEESECE TURU Chapter 5, 6, & 11 Questions, Ethics, OSHA, and Madan FG5.12 Alan owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume his exemptions and deductions are $10,000/year for all 6 years. Also, assume that Alan has just purchased a 5-year class concrete mixer for $100,000. The tax and MACRS depreciation tables attached. Alan Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $200.000 $210.000 $220,000 $230,000 $240,000 $250,000 Income Deductions Depreciation Taxable Income Tax Paid Calculate the Taxable income in Year I through 6. assuming the MACRS depreciation on the attached, and calculate her yearly taxes, assuming she is single Taxpayer. Highlight + A' Read aloud | Draw 1. The Middlesex County Engineering Department needs to repair the Brainerd Lake Dam in Cranbury NJ which had a similar repair (RipRap, stone facing, and spillway repair Fig. 1) done in 2000 for approximately $46,771.23. They would like to estimate this to a future value cost for this year 2020 assuming a safe discount rate of 6% over that period. They added an additional 1/3 to this estimated cost and plan to do a bond offering for that amount. A broker would like you to bid on this bond: = P(F/pin) It has a 10 year bond term with a face value (maturity value) MV (you calculate) 5% per year coupon rate paid annually You require an 8% ROR What would you bid (offer to pay) for the offered bond today present worth to achieve 8%. V= 3 *(1+) P=1(%in)+F(ption) See attached interest tables Fig. 1 Brainerd Lake Dam Cranbury V + 3 A Read aloud l Draw 15) How would your bid offer differ if the 5% per year coupon rate was paid quarterly? Highlight FG 13. Benefit Cost Analysis Question : Analysis Alternative A & Alternative Busing Excels built in formulas and determine which Alternative is acceptable for the given MARR. Question 2: What MARR would cause your answer the switch? Benefit Cost Ratio: B/C Present Worth Benefits Present Worth Costs Equivalent uniform annual benefits/ Equivalent uniform annual costs MARR Min. Acceptable Rate of Return if Benefit Cost (B/C) ratio > I then deem higher cost alternative acceptable if Benefit Cost (B/C) ratio 1 then deem lower cost alternative acceptable Given Information: n. MARR 5 8.00% Present Value Costs & Benefits Alt. B-A Cost Annual rev Annual rev= Annual rev Annual reva Annual rev> Years 0 1 2 3 4 5 Alt. A Alt. B ($840,000) ($900,000) $280,000 $560,000 $280,000 $240,000 $280,000 $200,000 $280,000 $200,000 $280,000 $200,000 (B/C) $0.00 $0.00 C:/Users/jakou/Downloads/Homework%20Assignment%204%20CE-210-001%20F20.pdf - + A Read aloud | Draw Hic PAF NA AP AG 33 LIS 25771 MF 100 0.40 . GO 3019 220 OVER www CO ISO Factor Table-2.00% PAG FP FIA TO LODE 0.83 L14 20 2440 1.2507 33464 LASE MOS 4.5061 731724 10:5213 HO TU 10.16 1. 12:47 . HU 16.6 2.51 TWI 180653 3.TIME 21 14735 1972 3414 CANT um 11.11 34 700 2021 4AN 304 $70 6300 4.7101 TI 0.13 01121 10 LS 2.27 2011 OM 1921 170 1601 11.00 31 OSTI CD 461 2.18 w OVE CUTE LE MO IND LO 2007 TE ROSE 100 LED TU 004 GI ER 5.231 6145 GA OCES OD 905 BERS DOS BOSTE COSTE CIRO Wor 200 23 WOWEGO 0.02 0367 CAP OM 414 10 TO RII 16 100 10TH 45.7.30 0403 18000 Srce wo 10 RO 73000 7502 MO O COM 17 LE VW MO LE 19 ARRERS NE WO SITE 4930 136 100 71 OD Wor was CHIES 131 140 TIES BOR LIVE Factor Table 6.00% F4 PE P/A ! 11 IRI FI THEY WE HE 22 CHE 18 SI BER 14 1 111 an 1 AT Twe THE 20-yoor 3.750X 7-210 6.677 5.177 5.713 Table A-1. 3., 5., 7., 10., 15., and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-your 10-year 16-year 1 33.33% 20.00 14.29% 2. 5.00% 44.45 10.00% 32.00 24.40 18.00 9.50 14.81 19.20 17.40 1440 8.38 7.41 11.52 12.40 11.52 7.70 11:52 8.00 5.76 8.92 7 7.37 0.23 8.98 6.56 5.00 4.46 6.55 5.90 10 6.50 5.91 6.55 5.00 11 12 3.28 5.00 5.91 15 5.90 5.01 16 17 2.95 18 10 20 5.255 4.838 4.522 4.402 4. 4,402 4,451 4.42 4.461 400 151 21 TABLE 6.2 Tax Table for Single Taxpayers, 2015 Taxable income of Single Taxpayers From This 37.451 90.751 189.00 411 SOL 412201 9.225 31.450 90.750 189.300 411.500 413.200 Above 102 5922.50 +159 of amount over $9.223 55.156.25.25 of amount over $37.450 S18.48125+ 28 of amount over $90.750 5:46.075 25 15 ramunt over $189.100 $119.401 25 of amount over $41500 $119.996.25 196 of amouer 5413.200