Chapter 10, Problem 051 A granary is considering a conveyor used in the manufacture of grain for transporting, filling, or emptying. It can be purchased and installed for $85,000 with $4,600 salvage value after 16 years. Operation and maintenance is expected to be $14,000 per year. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40 percent, and a MARR of 9 percent after taxes. If this conveyor is put into service, it will be the only capital investment for the year. Click here to access the TVM Factor Table Calculator Determine the after-tax annual worth assuming the investment tax credit has been reinstated at the 10 percent level. $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +3%. Determine the after-tax annual worth, assuming the Section 179 expense deduction is used. $ MACRS-GDS percentages for 3-, 5-, 7-, and 10-year property are 200% DBSLH and 15- and 20-year property are 150% DBSLH. EOY 3-Year Property 5-Year Property 7-Year Property 10-Year Property 15-Year Property 20-Year Property 33.33 20.00 14.29 10.00 3.750 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 5.00 2 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 Chapter 10, Problem 051 A granary is considering a conveyor used in the manufacture of grain for transporting, filling, or emptying. It can be purchased and installed for $85,000 with $4,600 salvage value after 16 years. Operation and maintenance is expected to be $14,000 per year. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40 percent, and a MARR of 9 percent after taxes. If this conveyor is put into service, it will be the only capital investment for the year. Click here to access the TVM Factor Table Calculator Determine the after-tax annual worth assuming the investment tax credit has been reinstated at the 10 percent level. $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +3%. Determine the after-tax annual worth, assuming the Section 179 expense deduction is used. $ MACRS-GDS percentages for 3-, 5-, 7-, and 10-year property are 200% DBSLH and 15- and 20-year property are 150% DBSLH. EOY 3-Year Property 5-Year Property 7-Year Property 10-Year Property 15-Year Property 20-Year Property 33.33 20.00 14.29 10.00 3.750 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 5.00 2 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231
