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Can you solve this in (p/f,i,N) form and solve it by hand, and not though the table method that people are using on chegg? 22.
Can you solve this in (p/f,i,N) form and solve it by hand, and not though the table method that people are using on chegg?
22. A $20,000 investment in machinery is under consideration. The project is ex- pected to have a life of 6 years and no salvage value. The estimated annual in- come from the project is $10,000 with annual operating expenses of $4,000. The investment will be depreciated by the MACRS (GDS) straight-line method based on a 5-year recovery period. If a 40% income tax rate is applied with a MARR of 5%, compute the present worth on the proposed investments after- tax cash flow under the following financial policies: The investment is provided from the firm's retained earnings. b. The initial investment is borrowed at 10% with repayment of interest at the end of each period and repayment of the loan principal at the end a. of 5 years. c. Repeat parts (a) and (b) for a MARR of 9%. 22. A $20,000 investment in machinery is under consideration. The project is ex- pected to have a life of 6 years and no salvage value. The estimated annual in- come from the project is $10,000 with annual operating expenses of $4,000. The investment will be depreciated by the MACRS (GDS) straight-line method based on a 5-year recovery period. If a 40% income tax rate is applied with a MARR of 5%, compute the present worth on the proposed investments after- tax cash flow under the following financial policies: The investment is provided from the firm's retained earnings. b. The initial investment is borrowed at 10% with repayment of interest at the end of each period and repayment of the loan principal at the end a. of 5 years. c. Repeat parts (a) and (b) for a MARR of 9%Step by Step Solution
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