Question
Complete the table below> As part of your start up for production of the cellphone blocking devices you will need to purchase an automated environmental
Complete the table below>
As part of your start up for production of the cellphone blocking devices you will need to purchase an automated environmental chamber for the baking of electronic components. This chamber is to be used for rigorous reliability testing and burn-in. It is installed for $1.4 million and will have a salvage value of $200,000 at the end of its useful life at 8 years. Its use will create an opportunity to increase sales by $675,000 per year and will have operating expenses of $250,000 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%. Based on the above information use the spreadsheet provided below to fill in for BTCF, DWO, TI, T, ATCF, MACRS (5), PWAT, and IRRAT.
EOY | BTCF | DWO | TI | T | ATCF | MACRS (5) |
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5 |
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8 |
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| MARRAT | 12% |
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| PWAT |
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| IRRAT |
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