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Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,680,000 installed. CP borrows 45% of all
Chevron Phillips (CP) has put into place new laboratory equipment for the production of chemicals; the cost is $1,680,000 installed. CP borrows 45% of all capital needed, and the borrowing rate is 10.1%. In the 1st year, 29% of the principal borrowed will be paid back. The throughput rate for in-process test samples has increased the capacity of the lab, saving a net of $X per year. In this 1st year, depreciation is $377,000 and taxable income is $320,000. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. Parta What is the gross income or annual savings $X? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +50
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