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Please help solve this problem, showing all necessary steps and if solved on excel show all work possible. and recovery period offers the better tax
Please help solve this problem, showing all necessary steps and if solved on excel show all work possible.
and recovery period offers the better tax advantage, and (b) demonstrate that the same total taxes are paid for MACRS and SL depreciation. 13.26 Thomas completed a study of a $1 million 3-year old DNA analysis and modeling system that DynaScope Enterprises wants to keep for 1 more year or dispose of now. His table (in $1000 units) details the analysis, including an anticipated $100,000 selling price (SP) next year, SL depreci- ation, taxes at the all-inclusive rate of T, = 52%, and PW at the after-tax MARR of 5% per year. Thomas recommends retention since PW > 0. Critique the analysis to determine if he made the correct recommendation. SP Depreciation TI Taxes Year 0 CFBT S-1000 275 275 275 275 CFAT S-1000 262 262 $250 250 $13 13 13 13 262 3 4 PW@ 5% 250 250 $100 362 $11.3 Step by Step Solution
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