Capital Tax Factor Analysis of Challenger (Q16 to Q21) Before-Tax Market Value Before-Tax Operating Expenses 690,000 586,500 498,525 423,746 360,184 1 85,000 102,000 122,400 146,880 176,256 211,507 253,809 304,570 3 4 306,157 260,233 6 7 221,198 188,018 After-Tax MARR = 6% 8. Depreciation Rate = 15% Income Tax Rate = 40% 16. The capital tax factor (CTF) with the half-year rule (4 decimals; no rounding) is 18. The equipment's first year service cost (based on the CTF method) is