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Expert solve tis for me please? 6) (35 points) A company is considering purchasing new equipment that is expected to generate an additional income of
Expert solve tis for me please?
6) (35 points) A company is considering purchasing new equipment that is expected to generate an additional income of $75,000 annually. The equipment will have an initial cost of $115,000 and estimated annual operating and maintenance costs of $45,000. Its estimated salvage value at the end of its useful life of 4 years is $22,500. The equipment is a MACRS-GDS 3-year property for calculating depreciation deductions. The effective tax rate is 35%. The after-tax MARR is 10% per year compounded annually. a) (25 points) For this new equipment, determine the after-tax cash flow for each year of operation. EOY BTCF MACRS-GDS Deduction ATCF Taxable Income Tax 10A b) (10 points) Use present worth analysis to determine if the company should purchase this new equipmentStep by Step Solution
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