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Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for
Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for $325,000. It is expected to last 8 years and has a salvage value of $30,000. Increased before tax cash flow due to this dyer is $87,500 per year. Milliken's tax rate is 40%, and the after-tax MARR is 12%. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR after 8 years.
- Use straight-line depreciation (no half-year convention).
- Use MACRS-GDS and state the appropriate property class.
- Use double declining balance depreciation (no half-year convention, no switching).
a. | $ | $ | % | % |
b. | $ | $ | % | % |
c. | $ | $ | % | %
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