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I know how to do just about everything, THE ONLY THING I NEED HELP IS CALCULATING THE FOLLOWING AT THE END OF THE PROBLEM: PW,
I know how to do just about everything, THE ONLY THING I NEED HELP IS CALCULATING THE FOLLOWING AT THE END OF THE PROBLEM: PW, FW, and AW, IRR, and ERR (ALL OF THEM BEING AFTER TAX), PLEASE BE DETAILED WHEN SOLVING AND SHOW WHICH FORMULAS YOU USED TO FIND THE ANSWER. Thanks in advance, and I"ll be sure to leave a thumbs up if done correctly.
Problem #2 (25 points) Taxation Problem The Michelin Tire Company is considering a new autoclave as part of the vulcanizing process for tire production. The autoclave can be purchased and installed for $1.25 million, and will have a salvage value of $350,000 at the end of its useful life at 8 years. Its use will create an opportunity to increase sales by $525,000 per year and will have operating expenses of $200,000 per year. Corporate income tax rates are calculated to be 40%. After careful consideration you decide to use a 5-yr Modified Accelerated Cost Recovery System (MACRS) depreciation schedule. You have decided to use a Minimum Attractive Rate of Return (MARR) of 12%. Using the above information, calculate the BTCF, DWO, TI, T, ATCF, and MACRS for each applicable year, and write your answers into the appropriate cells of the table below: Problem #2 (25 points) Taxation Problem The Michelin Tire Company is considering a new autoclave as part of the vulcanizing process for tire production. The autoclave can be purchased and installed for $1.25 million, and will have a salvage value of $350,000 at the end of its useful life at 8 years. Its use will create an opportunity to increase sales by $525,000 per year and will have operating expenses of $200,000 per year. Corporate income tax rates are calculated to be 40%. After careful consideration you decide to use a 5-yr Modified Accelerated Cost Recovery System (MACRS) depreciation schedule. You have decided to use a Minimum Attractive Rate of Return (MARR) of 12%. Using the above information, calculate the BTCF, DWO, TI, T, ATCF, and MACRS for each applicable year, and write your answers into the appropriate cells of the table belowStep by Step Solution
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