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Crane Comparis considering replacing an old asset with a new asset that costs $400.000 and is anticipated to have a salvage value of $30.000 at

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Crane Comparis considering replacing an old asset with a new asset that costs $400.000 and is anticipated to have a salvage value of $30.000 at the end of the under the MACRS tax system. Although the new set will continue to generate the same operating revenue as the old asset of 200.000 per year pret willed the following p ain in a costs: $120.000 in each of the first three years and $90,000 in the fourth year. The old asset, which originally cost $300.000 and has accumulated depreciation of 250.000 can be said row for more subject to a 40% tax rate for both ordinary income and capital gains, and has a 14 percent after-tax cost of capital. The MACRS percentages are as follows: Year Rate 33 454 15% 79 The present value of the operating cash flows that should be factored into Cranes analysis are 5132,753 O b. 5199,130. O $270,000 Od $331,883 Moving to another question will save this response MacBook Air 305 Crane Comparis considering replacing an old asset with a new asset that costs $400.000 and is anticipated to have a salvage value of $30.000 at the end of the under the MACRS tax system. Although the new set will continue to generate the same operating revenue as the old asset of 200.000 per year pret willed the following p ain in a costs: $120.000 in each of the first three years and $90,000 in the fourth year. The old asset, which originally cost $300.000 and has accumulated depreciation of 250.000 can be said row for more subject to a 40% tax rate for both ordinary income and capital gains, and has a 14 percent after-tax cost of capital. The MACRS percentages are as follows: Year Rate 33 454 15% 79 The present value of the operating cash flows that should be factored into Cranes analysis are 5132,753 O b. 5199,130. O $270,000 Od $331,883 Moving to another question will save this response MacBook Air 305

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