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A TL= 24,000,000 bTL = 2,600,000 C TL/YR = 3,000,000 D TL/YR = 11,450,000 E TL/YR = 2,600,000 : A construction machine has been purchased
A TL= 24,000,000
bTL = 2,600,000
C TL/YR = 3,000,000
D TL/YR = 11,450,000
E TL/YR = 2,600,000
: A construction machine has been purchased for A TL. The service life of the machine is 10 years, and it has a salvage value of B TL at the end of this period. The annual income obtained with the machine is C TL/year for the first 5 years and D TL/year for the last 5 years. The annual operating cost of the machine is E TL/year. Using a 4% interest rate per year in the analyses, answer the following questions: a) (20 pts.) Calculate the discounted payback period of the machine (Report your result with two digits). b) (10 pts.) Determine the yearly book values if the machine is depreciated according to the straight-line method. c) (10 pts.) If the tax to be paid is 20% of the net income, determine the present worth of the taxes using the straight-line methodStep by Step Solution
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