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Hi! Need assiatnce with the following proble. Please provide excel formulas. Thanks! Problem 7 In a typical year, J. B. Hunt Transport Services Inc. (JBHT)
Hi! Need assiatnce with the following proble. Please provide excel formulas. Thanks!
| Problem 7 | In a typical year, J. B. Hunt Transport Services Inc. (JBHT) purchases hundreds of new over-the-road tractors. A certain type of tractor has a retail price of $100,000. End-of-year book values (based on MACRS-GDS for a 5-year property), salvage values, and annual operations and maintenance (O&M) costs over its useful life are provided in the following table. | ||||||||
| EOY | Book Value | Salvage Value | O&M Costs | ||||||
| 1 | $80,000 | $53,000 | $15,000 | ||||||
| 2 | $48,000 | $39,000 | $21,000 | ||||||
| 3 | $28,800 | $28,000 | $27,000 | ||||||
| 4 | $17,280 | $18,000 | $34,000 | ||||||
| 5 | $5,760 | $14,000 | $42,000 | ||||||
| 6 | $0 | $6,000 | $49,000 | ||||||
| Determine the economic life of this type of tractor given that the MARR is 10% and the marginal tax rate is 40%. | |||||||||
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