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Examine the information in the table below. If the company expects to have an after tax rate of return of at least 10% in all
Examine the information in the table below. If the company expects to have an after tax rate of return of at least 10% in all of its investments, should the company invest in this investment? Year BTCF BTCF NPW MACRS Taxable @10% Depreciation Income Income Tax ATCF 0 -$400,000.00-$400,000.00 -$400,000.0 1 2 $80,000.00 $72,727.27 $57,160.00 $22,840.00 $8,907.60 $71,092.40 $80,000.00 $66,115.70 $97,960.00 -$17,960.00-$7,004.40 $87,004.40 3 $80,000.00 $60,105.18 $69,960.00 $10,040.00 $3,915.60 $76,084.40 $80,000.00 $240,000.00 Invest? $218,564.31 $49.960.00 $30,040.00 $11,715.60 $68,284.40 $75,040.00 $29,265.60 $210,734.40
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