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Below table shows the calculations for an after tax analysis of a machine purchase alternative EOY 0 1 2 3 4 5 6 6 BTCF

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Below table shows the calculations for an after tax analysis of a machine purchase alternative EOY 0 1 2 3 4 5 6 6 BTCF -20,000 16,000 16,000 16,000 16,000 16,000 16,000 2,000 Depreciation Taxable Income Deduction Income Taxes ATCF 0 0 0 -20,000 3,000 13,000 -6,500 9,500 3,000 13,000 -6,500 9,500 3,000 13,000 -6,500 9,500 3,000 13,000 -6,500 9,500 3,000 13,000 -6,500 9,500 3,000 13,000 -6,500 9,500 0 0 2,000 (a) Find answers to the below questions i. What are the cost basis (price) and "annual revenues less expenses"? i. What is the terminal market value (or salvage value) ? iii. What is the income tax rate? iv. What is the method used for depreciation deductions? v. What is the book value at the end of useful life? (b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at an after-tax MARR of 10%

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