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A tractor for over-the-road 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 over-the-road 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 $4,400. Transportation cost savings are expected to be $180,000 per year: however, the cost of drivers is expected to be $69.000 per year, and operating expenses are expected to be 559,000 per year, including fuel. maintenance, insurance, and the like. The company's marginal tax rate is 25 percent and MARR is 10 percent on after-tax cash flows. Suppose that, to AgriGrow's surprise, they actually dispose of the tractor at the end of the fourth tax year for $6,400. Develop tables using a spreadsheet to determine the ATCF foreach year and the after-tax PW.AW, IRR, and ERR after only 4 years. Click here to access the TVM Factor Table Calculator Parta Use straight-line depreciation (no half-year convention). End of Year ATCE 0 $ 1 $ 2. $ 3 $ 4 $ After-tax PW:$ After-tax AW: $ For dollar amounts, carry all interim calculations to decimal places and then round your final answer to the nearest dollar. The tolerance is t10 After-tax IRR: 96 After-tax ERR: 90 For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is 10.2. A tractor for over-the-road 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 $4,400. Transportation cost savings are expected to be $180,000 per year: however, the cost of drivers is expected to be $69.000 per year, and operating expenses are expected to be 559,000 per year, including fuel. maintenance, insurance, and the like. The company's marginal tax rate is 25 percent and MARR is 10 percent on after-tax cash flows. Suppose that, to AgriGrow's surprise, they actually dispose of the tractor at the end of the fourth tax year for $6,400. Develop tables using a spreadsheet to determine the ATCF foreach year and the after-tax PW.AW, IRR, and ERR after only 4 years. Click here to access the TVM Factor Table Calculator Parta Use straight-line depreciation (no half-year convention). End of Year ATCE 0 $ 1 $ 2. $ 3 $ 4 $ After-tax PW:$ After-tax AW: $ For dollar amounts, carry all interim calculations to decimal places and then round your final answer to the nearest dollar. The tolerance is t10 After-tax IRR: 96 After-tax ERR: 90 For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is 10.2

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