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Alt X Initial lost: 500,000 Uniform Anaual Benefit; 50,000 Salvage value: 100,000 Useful life i10 years Alt Y = 6% Initial cost: 925,000 Uniform Annuel
Alt X Initial lost: 500,000 Uniform Anaual Benefit; 50,000 Salvage value: 100,000 Useful life i10 years Alt Y = 6% Initial cost: 925,000 Uniform Annuel Benefit: 80,000 Salvage value: 300,000 Useful life izo years Tax Rate - Feederal only 21% 100% Bonus Depreciation / MARA=9% Select 2 depreciation methods and calculate the depreciation each year for your analysis period. Explain which is the best method for your company. Determine your federal taxes for the first year Using Example 12-6 as a template calculate before and after tax ROR - you can use straight line depreciation to simplify your calculations. What is your conclusion & recommendation based on the results of your calculations? This is not a summary of your calculations
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