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ANSWER PLZ QUICK 7) (35 points) Andes Inc. is considering the purchase of a new automated pallet stacking device to decrease labor costs in its

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ANSWER PLZ QUICK

7) (35 points) Andes Inc. is considering the purchase of a new automated pallet stacking device to decrease labor costs in its distribution center. For this device, the following data apply: Purchase price =$648,000{$360,000 from own funds (equity) and $288,000 from a loan } Equipment Life: 4 years Estimated salvage: $129,600 Depreciation: MACRS-GDS 3-year property EOY Expected O\&M Costs Effective tax rate: 35% Estimated Labor Savings $259,200 $288,000 $316,800 $345,600 Conditions on loan: $288,000 borrowed at a nominal rate of 6% per year compounded annually. The loan is to be repaid over 3 years with equal annual payments. a) (10 points) Loan calculations - principal and interest payments. (Round off values to the nearest dollar) b) ( 25 points) Find the ATCF for each year of this investment (Round off values to the nearest dollar)

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