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A tractor for overtheroad hauling is to be purchased by AgriGrow for $90,000. It is expected to be of use to the company for 6

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A tractor for overtheroad hauling is to be purchased by AgriGrow for $90,000. It is expected to be of use to the company for 6 years, after which it will be salvaged for $4,000. Transportation cost savings are expected to be $170,000 per year; however, the cost of drivers is expected to be $70,000 per year, and operating expenses are expected to be $63,000 per year, including fuel, maintenance, insurance, and the like. The company's marginal tax rate is 25 percent, and MARR is 10 percent on aftertax cash ows. Suppose that, to AgriGrow's surprise, they actually dispose of the tractor at the end of the fourth tax year for $6,000. Develop tables using a spreadsheet to determine the ATCF for each year and the aftertax PW, AW, IRR, and ERR after only 4 years. Click here to access the TVM Factor Table Calculator Part a Use straightline depreciation (no halfyear convention). End of Year ATCF 0 $ -90000 1 $ 2 $ 3 $ 4 $ Aftertax PW: $ Aftertax AW1$ For dollar amounts, carry all interim calculations to 5 decimal places and then round your nal answer to the nearest dollar. The tolerance is 1:10. Aftertax IRR: % Aftertax ERR: 15.1 % f1

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