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- Mo.purchased a computerized measuring device two years ago for $50,000. The equipment falls into the five-year category for MACRS depreciation and can currently be

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- Mo.purchased a computerized measuring device two years ago for $50,000. The equipment falls into the five-year category for MACRS depreciation and can currently be sold for $20,800. A new plece of equipment will cost $140,000. It also falls into the five-year category for MACRS depreclation. Assume the new equipment wouid provide the following stream of added cost savings for the next slx years. Use Table 12-12, Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. The firm's tax rate is 25 percent and the cost of capital is 8 percent. d. What is the cash inflow from the sale of the old equipment? (Do not round intermediate caiculations and round your answer to the neerest whole dollar.) e. What is the net cost of the new equipment? (Include the inflow from the sale of the old equipment.) (Do not round Intermecliate calculations and round your answer to the nearest whole dollar.) f. Determine the depreclation schedule for the new equipment. (Round the depreclation bese and annual depreclation answers to the neerest whole dollar. Round the percentage depreclatlon factors to 3 decimal pleces.) g. Determine the depreclation schedule for the remaining years of the old equipment. (Round the depreciation base and annual depreclation answers to the nearest whole doller. Round the percentege depreclation factors to 3 decimel places.) h. Determine the incremental depreciation between the old and new equipment and the related tax shield benefits. (Enter the tax rat as a decimal rounded to 2 decimal pleces. Round all other answers to the nearest whole dollar.) I. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole doller.)

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