Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
can you show work for these answers. The Michelin Tire Company is considering a new autoclave as part of the vulcanizing process for tire production.
can you show work for these answers.
The Michelin Tire Company is considering a new autoclave as part of the vulcanizing process for tire production. The autoclave can be purchased and installed for $1.25 million, and will have a salvage value of $350,000 at the end of its useful life at 8 years. Its use will create an opportunity to increase sales by $525,000 per year and will have operating expenses of $200,000 per year. Corporate income tax rates are calculated to be 40%. After careful consideration you decide to use a 5-yr Modified Accelerated Cost Recovery System (MACRS) depreciation schedule. You have decided to use a Minimum Attractive Rate of Return (MARR) of 12%. Using the above information calculate the BTCF DWO, TIT, ATCF, and MACRS for each applicable year, and write your answers into the appropriate cells of the table below: DWO TI MACRS (5) T Year 0 BTCF |-1125m ATCF -1.25m 1 75.000 20% 325,000 325,000 2 Pos,000 355.000 30,000 -30,000 34.000 75. DOO 32 3 85.000 97,000 4 325.000 325.000 325,ooo 250,000 900,00 aveco 144,000 144.000 72.000 187.000 72.400 252.600 19.20% 71.8% 11.52% 5.76% 5 72.400 6 187.000 25,000 252.600 229, 800 101,200 7 7 325,000 325.000 e 325,000 130,000 195,00 8 675.000 0 675,00 270,000 Yos,oco MARRAT 12% PWAT IRRAT $172,553.48 15.97%
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/669bfe0f771e7_150669bfe0ee8bb4.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started