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CAN YOU ANSWER IT ASAP ??? An industrial organization has bought a specialized machine for $120,000 which will save $20,000 each year for 10 years.
CAN YOU ANSWER IT ASAP ???
An industrial organization has bought a specialized machine for $120,000 which will save $20,000 each year for 10 years. Straight Line (SL) basis depreciation should be taken into consideration with a depreciable life of 10 years. After tax MARR is 10% per year. Effective income tax rate is 40%. After 10 years, the machine will have zero salvage value. a) Draw a table showing Before Tax Cash Flow (BTCF) and After Tax Cash Flow (ATCF). b) Calculate the after tax PW and IRR. (Use interpolation method to find IRR). Is it feasible? Click "Browse" to locate your file and then click "Upload" to upload your file. (Maximum file size: 20MB) File Step by Step Solution
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