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please help question 6-15 hope can have all step thx. The relative position number in the table represented by AA and the like in the
please help question 6-15 hope can have all step thx.
The relative position number in the table represented by AA and the like in the title.
Section 2: Tabular After-Tax Analysis Equipment Details: 1. Initial cost-$800,000. After-Tax MARR-6%. 2. 3. Depreciation Taye-25% 4. Income tax rate=50%. 5. Inflation rate=0%. 6. Salvage values and annual expenses (O+M) as shown in the table. Table Column Headings A: Before-Tax Market Value of the equipment. B: Annual Depreciation C: Book Value D: Recaptured Depreciation E: Taxes Payable or Tax Savings on Recaptured Depreciation F: After-Tax Market Value = Column A-Column E G: After-Tax Capital Recovery H: Tax Savings due to Depreciation Charges : Before-Tax Operating Expenses : After-Tax Operating Expenses K: Annual Cost for year n" .: After-Tax AEW if truck is kept "n" years. After-Tax Analysis EOY A 0 800,000 1 720,000 100,000 AA 2 648,000 175,000 3 583.200 162,000 4 524,880 145,800 5 472,392 131,220 6 425,153 118,098 7382,638 106,288 8 344,374 95,659 70,000 80,500 92,575 106.461 122,430 FF 140,795 161,914 GG 186,201 6. The dollar amount of cell AA (nearest 100) is a) 646,900; b) 685,200; c) 700,000; d) 896,100. 7. The dollar amount of cell BB (nearest 100) is a) 123,000, b) 128,200; c) 130,600; d) 131,100. 8. The dollar amount of cell CC (nearest 100 dollars) is a) 99,100; b) 110,100; c) 112,300; d) 130,900. 9. The dollar amount of cell DD (nearest 100) is a) 371,000; b) 489,300; c) 498,500; d) 508,400. The dollar amount of cell EE (nearest 100) is a) 76,800; b) 79,600; c) 82,900; d) 84,000. 10. The dollar amount of cell FF (nearest 100) is a) -62,800; b)-59,000; c)-19,600; d) 12,700. 11. The dollar amount of cell GG (nearest 100) is a) 81,000; b) 85,500; c) 97,900; d) 104,100. 12. The dollar amount of cell HH (nearest 100 dollars) is a) 87,500; b) 95,300; c) 98,300; d) 106,500. 13. The dollar amount of cell II (nearest 100 dollars) is a) 71,500; b) 78,300; c) 86,100; d) 92,200. 14. The after-tax economic life of the equipment is a) 3 years; b) 5 years; c) 6 years; d) 7 years; 8 years. 15Step by Step Solution
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