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Abbot placed into service a flexible manufacturing cell costing $850,000 early this year. They financed $425,000 of it at 11% per year over 5 years.

Abbot placed into service a flexible manufacturing cell costing $850,000 early this year. They financed $425,000 of it at 11% per year over 5 years. Gross income due to the cell is expected to be $750,000 with deductible expenses of $475,000. Depreciation is based on MACRS-GDS and the cell is in the 7 year property class. Abbots marginal tax rate is 40%, MARR is 10% after taxes, and they expect to keep the cell for 8 years. Loan is payed by making equal principal-plus-interest end-of-period payments. Calculate Present Worth after Tax.

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