Model A $15,000 $8,700 Model B $22,000 $10,500 Investment Cost Annual Incremental Revenues Annual O&M Costs Salvage Value Service Life Depreciation Method $1,600 $3,000 10 years 5-year MACRS $3,500 $5,000 10 Years 5-year MACRS Assume the After tax is MARR = 8% and the effective tax rate is 34%. 2. (5 points) What is the annual depreciation for the equipment for Model A? Complete the table below and show the book value for each year. 3. (5 points) What is the annual depreciation for the equipment for Model B? Complete the table below and show the book value for each year. 4. (5 points) What are the incremental revenues, expenses, and net income for each year for Model A? 5. (5 points) What are the incremental revenues, expenses, and net income for each year for Model B? Model A $15,000 $8,700 Model B $22,000 $10,500 Investment Cost Annual Incremental Revenues Annual O&M Costs Salvage Value Service Life Depreciation Method $1,600 $3,000 10 years 5-year MACRS $3,500 $5,000 10 Years 5-year MACRS Assume the After tax is MARR = 8% and the effective tax rate is 34%. 2. (5 points) What is the annual depreciation for the equipment for Model A? Complete the table below and show the book value for each year. 3. (5 points) What is the annual depreciation for the equipment for Model B? Complete the table below and show the book value for each year. 4. (5 points) What are the incremental revenues, expenses, and net income for each year for Model A? 5. (5 points) What are the incremental revenues, expenses, and net income for each year for Model B