I want to solve the second question, please

Q1. A company purchases an equipment for $160,000 to be used for 12 years. a) Construct the table of the switchover method. Use 125% DB and market value of $25,000 at the EOY 12 (1.25 murks). b) Construct the table of the switchover method. Use 125% DB und murket value of $10,000 at the EOY 12 (1.25 marks). You are required to show all calculations. Dropping only the answer in the table is not enough to get the full credits. Clearly show where the switchover occurs. Q2. Based on QI (a) above, construct the ATCF if $40,000 is expected to be obtained annually from operating this equipment #) Use the Corporate Federal Income Tax Rate shown in Slide # 5. Lecture 11 to construct the ATCF and calculate the PW for a MARR-10% (1.25 marks). b) Use a fixed 30% income tax rate to construct the ATCF and calculate the PW for a MARR 10% (1.25 marks). You are required to show all calculations. Dropping only the answer in the tables is not enough to get the full credits. 6 7 Alstatement showing Wuitchoven, from declinning balance method to sterceight-line methods $ 1,60,000.00 Cost of the asset 125% Declining Bolerce Rate 12.00 Useful life of asset $ 25,000.00 Salvage value 10.42% (1257/12 years) Depreciation made Declining Balance Straight line Depueciate Ye an adjusted Base Depreciate Depueciate Expense 41.35,000.00 14,062.50 11,250.00 14.062.50 211.20.937.50 12,597.66 10,994.32 12.597.66 31.08,639.84 11,285.40 | 10,833.98 11,285.40 4 97,054.44 10,109.84|10,783.83 10.783.83 51 86.944.61 9,056.73 10,868.08 10,783.83 71,887.88 8,113.32 11,126.84 10,783.83 6.9,774.56 7,268.78 11,629.09 10.783.83 8 62,506.37 6,511.08 12.501.27 10,783.83 955, 995.29 5,832.84 13,998.82 10783.83 1050, 16 2:45 5,225.26 16,720.82 10,783.83 11 44,937.19 4.680.96 22,468.60 10,783.83 1240,256.24 4,193.36 40,256,241 10,783.831 The depueciation under Stuaight- Cine method is moree in 4th year balance method to Straight line method will happen. B) statement showing Switchouer from dedining balance method to straight-line method. Cost of the asset $ 1,60,000.00 125 % Declining Balance Rate Useful life of assets 12 yeous $ 10,000.00 10.42% (125%./12 years ) Salvage Value Depreciation rate B) Statement Showing. Dwitchouer from dedining balance method to straight-line method. Cost of the asset $ 1,60,000.00 Declining Balance Rate 125 % Useful life of assets 12 years Salvage Value $ 10,000.00 Depececiation late 10.42% (1257/12 years year adjusted Base Deciziege Boland Stuaight line depreciation Depereciation Expense 11,50,000.00 15,625.00 12,500.00 15,625.00 23.34.375.00 13,997.40 12,215.91 13,997.40 311. 20.377.60 12,539.33 12.03 7.76 12,539.33 41,07,838.27 11,233.15 11,982.03 11,982.03 5| 96,605.12 10,063.03 12,075-64 11,982.03 686,542.08 9,014.80 12,363.15 11,982.03 777.527. 28 8,075.76 12,921.21 11,982.03 8 69,451.53 7.234.53 13,890.31 | 11,982.03 9 62, 2 16.99 6,480.94 15,554.25 41,982.03 do 55.736.05 5,865.84 18578.68 11,982.03 11 49,930.22 5,201.06 24,965.17 11,982.03 12 44,729.15 4,659.29 44,729.15 11982-03 Even though there is a change in Salvage value but the switching from Declining Balance method to straight line method there is no change in the year of switching. Q1. A company purchases an equipment for $160,000 to be used for 12 years. a) Construct the table of the switchover method. Use 125% DB and market value of $25,000 at the EOY 12 (1.25 murks). b) Construct the table of the switchover method. Use 125% DB und murket value of $10,000 at the EOY 12 (1.25 marks). You are required to show all calculations. Dropping only the answer in the table is not enough to get the full credits. Clearly show where the switchover occurs. Q2. Based on QI (a) above, construct the ATCF if $40,000 is expected to be obtained annually from operating this equipment #) Use the Corporate Federal Income Tax Rate shown in Slide # 5. Lecture 11 to construct the ATCF and calculate the PW for a MARR-10% (1.25 marks). b) Use a fixed 30% income tax rate to construct the ATCF and calculate the PW for a MARR 10% (1.25 marks). You are required to show all calculations. Dropping only the answer in the tables is not enough to get the full credits. 6 7 Alstatement showing Wuitchoven, from declinning balance method to sterceight-line methods $ 1,60,000.00 Cost of the asset 125% Declining Bolerce Rate 12.00 Useful life of asset $ 25,000.00 Salvage value 10.42% (1257/12 years) Depreciation made Declining Balance Straight line Depueciate Ye an adjusted Base Depreciate Depueciate Expense 41.35,000.00 14,062.50 11,250.00 14.062.50 211.20.937.50 12,597.66 10,994.32 12.597.66 31.08,639.84 11,285.40 | 10,833.98 11,285.40 4 97,054.44 10,109.84|10,783.83 10.783.83 51 86.944.61 9,056.73 10,868.08 10,783.83 71,887.88 8,113.32 11,126.84 10,783.83 6.9,774.56 7,268.78 11,629.09 10.783.83 8 62,506.37 6,511.08 12.501.27 10,783.83 955, 995.29 5,832.84 13,998.82 10783.83 1050, 16 2:45 5,225.26 16,720.82 10,783.83 11 44,937.19 4.680.96 22,468.60 10,783.83 1240,256.24 4,193.36 40,256,241 10,783.831 The depueciation under Stuaight- Cine method is moree in 4th year balance method to Straight line method will happen. B) statement showing Switchouer from dedining balance method to straight-line method. Cost of the asset $ 1,60,000.00 125 % Declining Balance Rate Useful life of assets 12 yeous $ 10,000.00 10.42% (125%./12 years ) Salvage Value Depreciation rate B) Statement Showing. Dwitchouer from dedining balance method to straight-line method. Cost of the asset $ 1,60,000.00 Declining Balance Rate 125 % Useful life of assets 12 years Salvage Value $ 10,000.00 Depececiation late 10.42% (1257/12 years year adjusted Base Deciziege Boland Stuaight line depreciation Depereciation Expense 11,50,000.00 15,625.00 12,500.00 15,625.00 23.34.375.00 13,997.40 12,215.91 13,997.40 311. 20.377.60 12,539.33 12.03 7.76 12,539.33 41,07,838.27 11,233.15 11,982.03 11,982.03 5| 96,605.12 10,063.03 12,075-64 11,982.03 686,542.08 9,014.80 12,363.15 11,982.03 777.527. 28 8,075.76 12,921.21 11,982.03 8 69,451.53 7.234.53 13,890.31 | 11,982.03 9 62, 2 16.99 6,480.94 15,554.25 41,982.03 do 55.736.05 5,865.84 18578.68 11,982.03 11 49,930.22 5,201.06 24,965.17 11,982.03 12 44,729.15 4,659.29 44,729.15 11982-03 Even though there is a change in Salvage value but the switching from Declining Balance method to straight line method there is no change in the year of switching