Florida Construction Equipment Rentals (FCER) purchases a new 12,000 pound rated crane for rental to its customers This crane costs $1,125,000 and is expected to last for 25 years, at which time it will have an expected salvage value of $150,000 FCER earns $200,000 before tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10,000,000 and $15,000,000 If FCER uses straight line depreciation and a MARR of 15 , what is the present worth of the after tax cash flow for this equipment Should the crane invest in this crane (5 Points) Use tax rate as 35 Show all work and by hand please 13 Florida Construction Equipment Rentals (FCER) purchases a new 12,000 pound rated crane for rental to its customers This crane costs $1,125,000 and is expected to last for 25 years, at which time it will have an expected salvage value of $150,000 FCER earns $200,000 before tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10,000,000 and $15,000,000 If FCER uses straight line depreciation and a MARR of 15 , what is the present worth of the after tax cash flow for this equipment Should the crane invest in this crane (5 Points) Use tax rate as 35

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Posted on Sep 06, 2024

Florida Construction Equipment Rentals (FCER) purchases a new 12,000-pound-rated crane for rental to its customers. This crane costs $1,125,000 and is expected to last for

Florida Construction Equipment Rentals (FCER) purchases a new 12,000-pound-rated crane for rental to its customers. This crane costs $1,125,000 and is expected to last for 25 years, at which time it will have an expected salvage value of $150,000. FCER earns $200,000 before-tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10,000,000 and $15,000,000. If FCER uses straight-line depreciation and a MARR of 15%, what is the present worth of the after -tax cash flow for this equipment? Should the crane invest in this crane? (5 Points) Use tax rate as 35%

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Show all work and by hand please

13. Florida Construction Equipment Rentals (FCER) purchases a new 12,000-pound-rated crane for rental to its customers. This crane costs $1,125,000 and is expected to last for 25 years, at which time it will have an expected salvage value of $150,000. FCER earns $200,000 before-tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10,000,000 and $15,000,000. If FCER uses straight-line depreciation and a MARR of 15%, what is the present worth of the after tax cash flow for this equipment? Should the crane invest in this crane? (5 Points) Use tax rate as 35%