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Consider a company owned asset that costs $820,000, will have a useful life of 8 years, and a salvage value at that time of $120,000.

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Consider a company owned asset that costs $820,000, will have a useful life of 8 years, and a salvage value at that time of $120,000. The before-tax net revenue will be $160,000 per year. The company's after-tax MARR is 8% and its combined federal and state tax rate is 25%. The table below represents the spreadsheet containing all the required information, including the row and column naming convention, to answer the following question. B D E F G H H P= $820,000 2 S = $120,000 3 BT Net Rev = $160,000 4 MARRAT 8% 5 n = 8 6 7 Tax rate = 25% 00 8 MARRBT = 8%/(1 - 25%) = 10.667% 9 10 EOY BTCF DWO (SLN) S TI T ATCF 11 o -$820,000 -$820,000 12 1 $160,000 $87,500 $72,500 $18,125 $141,875 13 2. $160,000 $87,500 $72,500 $18,125 $141,875 14 3 $160,000 $87,500 $72,500 $18,125 $141,875 15 4 $160,000 $87,500 $72,500 $18,125 $141,875 16 5 $160,000 $87,500 $72,500 $18,125 $141,875 17 6 $160,000 $87,500 $72,500 $18,125 $141,875 18 7 $160,000 $87,500 $72,500 $18,125 $141,875 19 8 $280,000 $87,500 $120,000 $72,500 $18,125 $261,875 20 TOTAL DEPR $700,000 Which Excel entry should you use to determine the before-tax AW (AWBT) using SLN depreciation? =NPV($D$8,$C$5,,-FV($D$8,C12:C19)-C11) O=FV($D$8,$C$5,-(NPV($D$8,$C$5,,-FV($D$8,C12:C19)-C11))) O=FV($D$8,$C$5,,-NPV($D$8,C12:C19)-C11) O =PMT($D$8,$C$5,,-(FV($D$8,$C$5,-NPV($D$8,C12:C19)-C11)))

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