A tractor for over the road hauling is to be purchased by AgriGrow for $80,000 It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,800 Transportation cost savings are expected to be $140,000 per year however, the cost of drivers is expected to be $53,000 per year, and operating expenses are expected to be $47,000 per year, including fuel, maintenance, insurance, and the like The companys marginal tax rate is 25 percent, and MARR is 10 percent on after tax cash flows Suppose that, to AgriGrows surprise, they actually dispose of the tractor at the end of the fourth tax year for $5,800 Develop tables using a spreadsheet to determine the ATCF for each year and the after tax PW, AW, IRR, and ERR after only 4 years Use straight line depreciation (no half year convention) After tax IRR After tax ERR

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A tractor for over the road hauling is to be purchased by AgriGrow for $80,000  It is expected to be of use to the company for 6 years, after which it will be salvaged for $3,800  Transportation cost savings are expected to be $140,000 per year  however, the cost of drivers is expected to be $53,000 per year, and operating expenses are expected to be $47,000 per year, including fuel, maintenance, insurance, and the like  The companys marginal tax rate is 25 percent, and MARR is 10 percent on after tax cash flows  Suppose that, to AgriGrows surprise, they actually dispose of the tractor at the end of the fourth tax year for $5,800  Develop tables using a spreadsheet to determine the ATCF for each year and the after tax PW, AW, IRR, and ERR after only 4 years   Use straight line depreciation (no half year convention)   After tax IRR   After tax ERR

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A tractor for over-the-road hauling is to be purchased by AgriGrow for $80,000. It is expected to be of use to the company for 6

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