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Please Explain when you do tables 1. Popsico is considering the purchase of a device that will speed up their soft drink production. The device

Please Explain when you do tables

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1. Popsico is considering the purchase of a device that will speed up their soft drink production. The device has an ADR class life of 7 years. The device will cost $240,000 and produce annual benefits of $85,000. The equipment will be sold 4 years later for 30,000, The company is in the 34% tax bracket. Use MACRS depreciation. Year BTCF ATCF 0 -$240,000 1 $85,000 2 $85,000 3 $85,000 4 $115,000 a. Fill in the table to determine the AFTER TAX CASH FLOW (ATCF) for the project. Determine any ordinary gains or losses incurred when BP sold the equipment. b. Inflation rate is 4% per year, determine the Real and ACTUAL DOLLARS BTCF. Year Real Dollars BTCF Actual Dollars BTCF 0 2 A

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