An energy conservation project is being evaluated. Four levels of performance are considered feasible. Based on?E(PW) and?after-tax analysis, should the project be?implemented? Calculate the PW of?after-tax cost savings for all the performance levels. ?(Round to the nearest?hundreds.)

How do I calculate the PW after tax cost for every performance level?

i More Info X The estimated probabilities of each performance level and the estimated before-tax cost savings in the first year are shown in the following table: Performance Cost Savings Level (L) P(L) (1st yr; before taxes) 0.15 $22,500 0.25 35,000 0.35 44,200 0.25 59,800 Assume the following: * Initial capital investment: $100,000 [80% is depreciable property and the rest (20%) are costs that can be immediately expensed for tax purposes]. * The ADS under MACRS is being used. The ADS recovery period is four years. * The before-tax cost savings are estimated to increase 6% per year after the first year. * MARRAT = 12% per year; the analysis period is five years; MV = 0. . The effective income tax rate is 40%. Print Done1 More Info X Discrete Compounding; /=12% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1.1200 0.8929 1.0000 0.8929 1.0000 1.1200 1.2544 0.7972 2.1200 1.6901 0.4717 0.5917 1.4049 0.7118 3.3744 2.4018 0.2963 0.4163 1.5735 0.6355 4.7793 3.0373 0.2092 0.3292 1.7623 0.5674 6.3528 3.6048 0.1574 0.2774 Print Done1 More Info X Discrete Compounding; /=6% Single Payment Uniform Series Compound Compound Sinking Capital Amount Present Amount Present Fund Recovery Factor Worth Factor Factor Worth Factor Factor Factor To Find F To Find P To Find F To Find P To Find A To Find A Given P Given F Given A Given A Given F Given P N FIP PIF FIA PIA AIF AIP 1.0600 0.9434 1.0000 0.9434 1.0000 1.0600 1.1236 0.8900 2.0600 1.8334 0.4854 0.5454 1.1910 0.8396 3.1836 2.6730 0.3141 0.3741 1.2625 0.7921 4.3746 3.4651 0.2286 0.2886 1.3382 0.7473 5.6371 4.2124 0.1774 0.2374 Print Done