help with question 12-15 parts a and b without use of excel. thank you

of return after lases be used to write Compute: (a) The after-tax present worth turn after taxes must be written next 20 years 12-16 ACDC new machine that expected to lead 12-19 cooling design co- 12-2 (b) What is the prospective rate of retur if straight-line depreciation can be used off these assets for tax purposes in 9 year (c) What is the prospective rate of return afte if it is assumed that these assets must be w off for tax purposes over the next 20 using straight-line depreciation? 12-13 A project using passive heating/cooling cepts to reduce energy costs requires an inves of $125,000 in equipment (straight-line depre tion with a 10-year depreciable life and So saly value), and $30,000 in labor (not depreciable). A the end of 10 years, the project will be terminated Assuming a combined tax rate of 26% and after- tax MARR of 15%, determine the project's after-tax present worth. 12-14 Florida Construction Equipment Rentals (FCER) purchases a new 10,000-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 $147,000. FCER carns $195,000 before-tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10M and $15M. 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 company invest in this crane? Contributed by Paul R. McCright, University of South Florida 12-15 A firm manufactures padded shipping bags. cardboard carton should contain 100 bags, machine operators fill the cardboard cartons by eye, So a carton may contain anywhere from 98 101 bags (average = 105.5 bags). Each padded costs $0.03. Management realizes that they are giving a 51/2% of their output by overfilling the carton solution is to automate the filling of shipping tons. This should reduce the average qual bags per carton to 100.3. with almost no cu containing fewer than 100 bags. The equipment would cost $18 straight-line depreciation with a 10-year ble life and a $3600 salvage value wou the equipment costs $16,000 annually ate. 200,000 cartons will be filled each large profitable corporation has a 28% federal-plus-state incremental tax rat 10-year study period for the analysis a tax MARR of 15%. The after-tax internal rate of return The after-tax simple payback period ACDC Company is considering the installation machine that costs $150,000. The machine is -ted to lead to net income of $44,000 per year the next 5 years. Using straight-line depreciation. si salvage value, and an effective income tax rate of 28. determine the after-tax rate of return for this investment. If the company's after-tax MARR rate is 12%, would this be a good investment or not? Contributed by Mukasa Ssemakula, Wayne State University 12.17 An old duplex was bought for $200,000 cash. Both sides were rented for $2500 per month. The total annual expenses for property taxes, repairs, gar- dening, and so forth are estimated at $200 per month. For tax purposes, straight-line depreciation over a 20-year remaining life with no salvage value is used. Of the total $200,000 cost of the prop- erty $50,000 is the value of the lot. Assume 38% incremental income tax bracket (combined state and federal taxes) applies throughout the 20 years. If the property is held for 20 years, what after-tax rate of return can be expected? (a) Assume the building and the lot can be sold for the lot's $50,000 estimated value. (b) A more optimistic estimate of the future value of the building and the lot is that the property can be sold for $150,000 at the end of 20 years. Declining Balance Depreciation 12-18 A firm is consi urm is considering the following investment A project: "g the cartons. One filling of shipping car crage quantity of Before-Tax Cash Flow (thousands) Year 0 cost $18,600 and 10-year deprecia ale would be used mually to oper ach year. This as a 28% combined tax rate. Assume a ysis and an after $1000 500 340 244 100 100 125 Salvage value) of return after lases be used to write Compute: (a) The after-tax present worth turn after taxes must be written next 20 years 12-16 ACDC new machine that expected to lead 12-19 cooling design co- 12-2 (b) What is the prospective rate of retur if straight-line depreciation can be used off these assets for tax purposes in 9 year (c) What is the prospective rate of return afte if it is assumed that these assets must be w off for tax purposes over the next 20 using straight-line depreciation? 12-13 A project using passive heating/cooling cepts to reduce energy costs requires an inves of $125,000 in equipment (straight-line depre tion with a 10-year depreciable life and So saly value), and $30,000 in labor (not depreciable). A the end of 10 years, the project will be terminated Assuming a combined tax rate of 26% and after- tax MARR of 15%, determine the project's after-tax present worth. 12-14 Florida Construction Equipment Rentals (FCER) purchases a new 10,000-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 $147,000. FCER carns $195,000 before-tax cash flow each year in rental income from this crane, and its total taxable income each year is between $10M and $15M. 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 company invest in this crane? Contributed by Paul R. McCright, University of South Florida 12-15 A firm manufactures padded shipping bags. cardboard carton should contain 100 bags, machine operators fill the cardboard cartons by eye, So a carton may contain anywhere from 98 101 bags (average = 105.5 bags). Each padded costs $0.03. Management realizes that they are giving a 51/2% of their output by overfilling the carton solution is to automate the filling of shipping tons. This should reduce the average qual bags per carton to 100.3. with almost no cu containing fewer than 100 bags. The equipment would cost $18 straight-line depreciation with a 10-year ble life and a $3600 salvage value wou the equipment costs $16,000 annually ate. 200,000 cartons will be filled each large profitable corporation has a 28% federal-plus-state incremental tax rat 10-year study period for the analysis a tax MARR of 15%. The after-tax internal rate of return The after-tax simple payback period ACDC Company is considering the installation machine that costs $150,000. The machine is -ted to lead to net income of $44,000 per year the next 5 years. Using straight-line depreciation. si salvage value, and an effective income tax rate of 28. determine the after-tax rate of return for this investment. If the company's after-tax MARR rate is 12%, would this be a good investment or not? Contributed by Mukasa Ssemakula, Wayne State University 12.17 An old duplex was bought for $200,000 cash. Both sides were rented for $2500 per month. The total annual expenses for property taxes, repairs, gar- dening, and so forth are estimated at $200 per month. For tax purposes, straight-line depreciation over a 20-year remaining life with no salvage value is used. Of the total $200,000 cost of the prop- erty $50,000 is the value of the lot. Assume 38% incremental income tax bracket (combined state and federal taxes) applies throughout the 20 years. If the property is held for 20 years, what after-tax rate of return can be expected? (a) Assume the building and the lot can be sold for the lot's $50,000 estimated value. (b) A more optimistic estimate of the future value of the building and the lot is that the property can be sold for $150,000 at the end of 20 years. Declining Balance Depreciation 12-18 A firm is consi urm is considering the following investment A project: "g the cartons. One filling of shipping car crage quantity of Before-Tax Cash Flow (thousands) Year 0 cost $18,600 and 10-year deprecia ale would be used mually to oper ach year. This as a 28% combined tax rate. Assume a ysis and an after $1000 500 340 244 100 100 125 Salvage value)