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Buying appliances for restaurant. To complement the equipment you already have you need to buy a cooler that costs $20,000 and that it classifies for

Buying appliances for restaurant. To complement the equipment you already have you need to buy a cooler that costs $20,000 and that it classifies for depreciation effects as a 3-year MACRS property. It is estimated that the asset will have a resale value at the end of its six-year lifespan of $3,000. Expected operational and maintenance expenses will be $1,500 in the first year and will increase $300 annually from the second year. Uniform annual income of $10,000 is expected. In addition, to acquire this alternative you needs to make a $10,000 loan that will be repaid in four years according to the depreciation itinerary shown in the table.

Balance Beginning Year || Accumulated Interest 7% || Total Accumulated || Annual Payment || Final balance

10,000 7.748 5.338 2.759 700.00 542.34 373.64 193.14 10,700 $2,952.28 8.290 $2,952.28 5,711 $2,952.28 2.952 $2,952.28 10,000


Generate the table by detailing the after-tax analysis of this investment alternative. Apply an effective tax rate of 30%. You must show your counts in detail to get credit.
Once your analysis is complete, briefly explain what merit measure (decision criteria) you would use to explain if this is a good investment. Write a sentence with your recommendation. Show a MARR after tax of 15%.

10,000 10,000 700.00 10,700 $2,952.28 $7,747.72 7,748 542.34 8,290 $2,952.28 $5,337.78 5,338 373.64 5,711 $2,952.28 $2,759.14 2,759 193.14 2,952 $2,952.28 $0.00

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