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Need some help with this question, thank you 1. (20 points) Assume you are now working in industry at Tesla. The corporation is consid- ering
Need some help with this question, thank you
1. (20 points) Assume you are now working in industry at Tesla. The corporation is consid- ering purchasing a new cloud computing system which has a 5-year useful life. They are planning on using the device for 7 years. The system costs 3594900 and it can be sold at the end of year 7 for 58.000. The corporate finance team estimates that the yearly benet attributable to this system is $15,000. The company prefers to use MACRS for depreciation. they are subject to a 34% tax rate. and they use an MARR of 12%. (a) (2 points) Draw a cash flow diagram for the before tax cash flow for the 7-year term of this purchase: (b) (10 points) Using the information above. fill in the following table: Year Before Tax Cash Flow l Depreciation Taxable Income After Tax Cash Flow NGU'DWNHO (c) (3 points) Given your answer for part b, what is the W5 W9 jut-trawl M 015 mw'n (d) (5 points) Given your answer for part c. should you invest in this new system? Why or why notStep by Step Solution
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