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no excel please Pastabilities, Inc., purchased an egg noodle machine four years ago at a cost of $100,000. The machine was classified as a five-year

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Pastabilities, Inc., purchased an egg noodle machine four years ago at a cost of $100,000. The machine was classified as a five-year MACRS asset for tax purposes. The relevant percentages for tax purposes, rounded for ease of calculation, are: 1 -- 20%; 2 -- 30%; 3 --20%; 4 -- 12%; 5 --12%; and 6: 6%. The machine's estimated operating and maintenance (O&M) costs and expected residual values for the next three years, all before taxes, are: O&M Costs End of Year 0 Residual Value $25,000 20,000 16,000 12,000 30,000 35,000 40,000 2 3 Pastabilities is in the 30% marginal income tax bracket. Required: (Show your work for partial credit) a. If Pastabilities sold the machine today, how much would it expect to receive after income taxes? b. If Pastabilities used the machine for one year, what would be the after-tax cost of using it during the year? Don't forget the tD!! c. If Pastabilities sold the machine at the end of one year, how much would it expect to receive after income taxes? d. Putting a, b and c together, what would be the cost, in time one year-end dollars, of using the asset from time zero until time 1? By using the asset until time one, Pastabilities would forego the proceeds from selling it at time zero. e. In a similar fashion, what would be the cost, in time 2 year-end dollars, of using the asset from time 1 until time 2

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