AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $344,000; market value at end of year six = $124,000; annual revenues = $127,000; annual expenses = $10,000; equipment life=6 years, effective income tax rate = 45%; and after-tax MARR 8% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFs. Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the More Info a. Calculate the PW of the EVA of this equipment. Discrete Compounding; ,#8% PWEVA(8%)= $11 (Round to the nearest hundreds.) Single Payment Uniform Series Compound Amount Factor To Find F Given A Capital Recovery Factor To Find A b. Calculate the PW of the equipment's ATCFs. Amount Present Worth Factor To Find P Given A Fund Factor To Find A Factor Worth Factor PWATCF (8%)-S (Round to the nearest hundreds.) To Find F To Find P ven F Given P Given FGiven P Note that the answer in Part (a) is almost the same as the answer in Part (b). 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 14.4866 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 AIF 1.0000 0.4808 0.3080 0.2219 0.1705 0.1363 0.1121 0.0940 0.0801 0.0690 A/P 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 1 More Info GDS Recovery Rates (rk) Year 5-year Property Class 0.2000 0.3200 0.1920 1.99900.5403 2.1589 0.5002 0.4632 0.1152 0.0576 PrintDone AMT, Inc., is considering the purchase of a digital camera for maintenance of design specifications by feeding digital pictures directly into an engineering workstation where computer-aided design files can be superimposed over the digital pictures. Differences between the two images can be noted, and corrections, as appropriate, can then be made by design engineers. a. You have been asked by management to determine the PW of the EVA of this equipment, assuming the following estimates: capital investment = $344,000; market value at end of year six = $124,000; annual revenues = $127,000; annual expenses = $10,000; equipment life=6 years, effective income tax rate = 45%; and after-tax MARR 8% per year. MACRS depreciation will be used with a five-year recovery period. b. Compute the PW of the equipment's ATCFs. Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the More Info a. Calculate the PW of the EVA of this equipment. Discrete Compounding; ,#8% PWEVA(8%)= $11 (Round to the nearest hundreds.) Single Payment Uniform Series Compound Amount Factor To Find F Given A Capital Recovery Factor To Find A b. Calculate the PW of the equipment's ATCFs. Amount Present Worth Factor To Find P Given A Fund Factor To Find A Factor Worth Factor PWATCF (8%)-S (Round to the nearest hundreds.) To Find F To Find P ven F Given P Given FGiven P Note that the answer in Part (a) is almost the same as the answer in Part (b). 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 1.0000 2.0800 3.2464 4.5061 5.8666 7.3359 8.9228 10.6366 12.4876 14.4866 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 AIF 1.0000 0.4808 0.3080 0.2219 0.1705 0.1363 0.1121 0.0940 0.0801 0.0690 A/P 1.0800 0.5608 0.3880 0.3019 0.2505 0.2163 0.1921 0.1740 0.1601 0.1490 1 More Info GDS Recovery Rates (rk) Year 5-year Property Class 0.2000 0.3200 0.1920 1.99900.5403 2.1589 0.5002 0.4632 0.1152 0.0576 PrintDone