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please don't use excel excel is not allowed for me 10.03-PR015 An investment of $450,000 is made in equipment that qualifies as 5-year equipment for
please don't use excel excel is not allowed for me
10.03-PR015 An investment of $450,000 is made in equipment that qualifies as 5-year equipment for MACRS-GDS depreciation. The then-current dollar before tax cash flows are given by a $50,000 increasing gradient series, with the cash flow the first year equaling $100,000. In addition, a $50,000 then- current salvage value occurs at the end of the 5-year planning horizon. A 25% tax rate and 4% inflation rate apply. The real ATMARR is 8%. a. Determine the after-tax cash flows, in constant dollars, for each year. b. Determine the present worth for the investment. c. Determine the real internal rate of return for the investmentStep by Step Solution
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