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f . Determine the depreciation schedule for the new equipment. Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round

f. Determine the depreciation schedule for the new equipment.
Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage
depreciation factors to 3 decimal places.
Answer is not complete. g. Determine the depreciation schedule for the remaining years of the old equipment.
Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage
depreciation factors to 3 decimal places.
Answer is not complete. h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits.
Note: Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.
Answer is not complete.
i. Compute the aftertax benefits of the cost savings.
Note: Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.Hercules Exercise Equipment Company purchased a computerized measuring device two years ago for $82,000. The equipment falls
into the five-year category for MACRS depreciation and can currently be sold for $36,800. A new piece of equipment will cost
$250,000. It also falls into the five-year category for MACRS depreciation. Assume the new equipment would provide the following
stream of added cost savings for the next six years. Use Table 12-12. Use Appendix B for an approximate answer but calculate your
final answer using the formula and financial calculator methods.
The firm's tax rate is 25 percent and the cost of capital is 8 percent.
f. Determine the depreciation schedule for the new equipment.
Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.
g. Determine the depreciation schedule for the remaining years of the old equipment.
Note: Round the depreciation base and annual depreciation answers to the nearest whole dollar. Round the percentage depreciation factors to 3 decimal places.
h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits.
Note: Enter the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.
i. Compute the aftertax benefits of the cost savings.
Note: Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.
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