I don't understand how to get pw tax the last row in spread sheet

UB would lly as it is in most countries pared to ause DDB does not reduce the book less not fare as well as MACRS. This is o. This is illustrated in Example 17.3 AMPLE 17.3 analysis for a new $50,000 ma chine proposed for a fiber optics manufacturing line CEBT for the machine is estimated at $20,000. If a recovery period of 5 years fo in process. The esent worth of taxes criterion, an effective tax rate of 35%, and a return of 8% posed by MACRSalf00 Solution nethod. For classical straight line anual depreciation eas, aassical DDB percentage of d 2 0.40 is applied for 5 years. The implied salvage value is sical DDB will be TABLE 17- year to comp es, use e the following: classical straight line, classical DDB, and MACRS depre- 6-vear period for the comparison to accommodate the half-year convention im- s a summary of annual depreciation, taxable income, and taxes for each and straight line depreciation, the numbers are n 5, D,$10 olumn 3). The CFBT of S20.000 is fully taxed at 35% in year 6. = 0 (c and D6 classica ,000 for 5 $50,000 46.112 $3888, so not all S50,000 is tax deductible. The taxes using clas- will be $38880.35) 1361 larger than for the classical SL. method. 3 Comparison of Taxes and Present Worth of Taxes for Different Depreciation Methods Classical Double Declining Balance Classical Straight Line MACRS (2) (3) (4) (5)-0.35(4) (6) (7)(8) 0.35(7) (9 (10) (11) 0.35(10) CFBT, $ Dr, $ Tl, $ . Taxes, $ Dr, $ TI, $ Taxes, $ Tl, $ Taxes,$ Dr $ 10,000 10,000 Year t +20,000 10,000 10,000 3,500 20,000 3,500 2 +20,000 10,000 10,000 3 +20,000 10,000 10,000 3,500 4 +20,000 10,000 10,000 3.500 4.320 15.,680 5,488 5 +20,000 10,000 10.000 3,500 6 +20,000 1,400 3.640 4,984 4,984 5,992 24.500 18,162 3.500 12,000 8,000 2.800 16,000 7.200 12,800 4,480 9,600 10.400 5,760 14,240 5,760 14,240 0 20,000 7,0002,880 17,120 2.592 17408 6.093 7,000 24,500 46,112 18,386 0 20,000 Totals PW 25,8618 50,000 18,549 50,000 rlier The Larger than other values since there is an implied salvage value of $3888 not recovered