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example 7-12 is the exact same question but different numbers. you can see the solution for example and I need the solution in that form

example 7-12 is the exact same question but different numbers. you can see the solution for example and I need the solution in that form
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3. (2 points) Suppose that an asset with a cost basis of $100,000 and an ADS recovery period of five years is being depreciated under the Alternate Depreciation System (ADS) of MACRS, as follows: Year 2 3 5 $10,000 $20,000 Depreciation Deduction $20,000 $20,000 $20,000 $10,000 If the firm's effective income tax rate remains constant at 25% during this six-year period, what is the PW of after-tax savings resulting from depreciation when MARR = 12% per year (after taxes)? EXAMPLE 7-12 PW of MACRS Depreciation Amounts Suppose that an asset with a cost basis of $100.000 and an ADS recovery period of five years is being depreciated under the Alternate Depreciation System (ADS) of MACRS as follows: Year 4 5 6 Depreciation Deduction $10,000 $20,000 $20,000 $20,000 $20,000 $10,000 54 CHAPTER 7 / DURECIATION AND INCOME TAXES If the firm's effective income tax rate remains constant at 40% during this six-year period, what is the PW of after-tax savings resulting from depreciation when MARR = 10% per year (after taxes)? Solution The PW of tax credits (savings) because of this depreciation schedule is PW(10%) = 0.40 (1.10)-* = $4,000(0,9091) + $8,000(0.8264) + + $4,000(0.5645) = $28.948

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