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MACRS-GDS percentages for 3-, 5-, 7-, and 10-year property are 200% DBSLH and 15- and 20-year property are 150% DBSLH. EOY 3-Year Property 5-Year Property
MACRS-GDS percentages for 3-, 5-, 7-, and 10-year property are 200% DBSLH and 15- and 20-year property are 150% DBSLH. EOY 3-Year Property 5-Year Property 7-Year Property 10-Year Property 15-Year Property 20-Year Property 33.33 20.00 14.29 10.00 3.750 44.45 32.00 24.49 18.00 9.50 7.219 14.81 19.20 17.49 14.40 8.55 6.677 5.00 2 4 7.41 11.52 12.49 11.52 7.70 6.177 5 11.52 8.93 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 | Your answer is partially correct. Try again. A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $100,000 with $2,500 salvage value after 16 years. The other can be purchased and installed for $90,000 with $4,000 salvage value after 16 years. Operation and maintenance for each is expected to be $15,000 and $10,500 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Alternative 2 Show the AW values used to make your decision: x -18316.30 Conveyor 1: $6 X -21205.80 Conveyor 2
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