please show all work and circle final

Problem 9-20 (algorithmic) Rended where more produtive real 000 weds MV 10.000 end of the synon restoran of MACRS (GOSdeprecalentat property.com ww The event was decor marione) by 800 fot year and we expected to create yrach w where you have prema so res for a $15.000. The world war. There is on De reprive for a crew can lewe wat bered the engine could potom dorty towy Aneta wer MARRI pewned on the should you replace to feeder wecharger une Die o to vo vyhyer property Click the icon weerstand anruty table de company when the MARS Fan with the resour A gre x More Info GDS Recovery Rates (tk) Year 5-year Property Class 1 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 AWN Print Done x * More Info N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; 1= 6% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0600 0.9434 1.0000 0.9434 1.0000 1.1236 0.8900 2.0600 1.8334 0.4854 1.1910 0.8396 3.1836 2.6730 0.3141 1.2625 0.7921 4.3746 3.4651 0.2286 1.3382 0.7473 5.6371 4.2124 0.1774 1.4185 0.7050 6.9753 4.9173 0.1434 1.5036 0.6651 8.3938 5.5824 0.1191 1.5938 0.6274 9.8975 6.2098 0.1010 1.6895 0.5919 11.4913 6.8017 0.0870 1.7908 0.5584 13.1808 7.3601 0.0759 Capital Recovery Factor To Find A Given P / 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 0.1470 0.1359 Print Done our ed: It is being decided whether or not to replace an existing piece of equipment with a newer, more productive one that costs $80,000 and has an estimated MV of $19.000 at the end of its useful life of six years. Installation charges for the new equipment wil amount to $2,500; this is not added to the capital investment but will be an expensed item during the first year of operation MACRS (GDS) depreciation (5-year property class) will be used. The new equipment will reduce direct costs (abor, maintenance, rework, etc.) by 59,000 in the first year, and this amount is expected to increase by $600 each year thereafter during its six your life. It is also known that the BV of the fully depreciated old machine is $0 but that its present fair MV is $15,000 The MV of the old machine will be zero in six years. The effective income tax rate is 40% a. Determine the prospective after-tax incremental cash flow associated with the new equipment if it is believed that the existing machine could perform satutactory for six more years b. Assume that the after-tax MARR is 6% per year. Based on the ERR method, should you replace the defender with the challenger Assume MARR. Click the icon to view the GDS Recovery Rates (2) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 6% per you a. Fill in the table below. (Round to the nearest dollar) Incremental Cash Flows A Challenger-Defender) 0 are: issio rec EOY QL GDS Recovery Rates () Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 0.1152 0.0576 Print Done perform = MARR N 1 2 Discrete Compounding; /= 6% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FA PIA AIF 1.0600 0.9434 1.0000 0.9434 1.0000 1.1236 0.8900 2.0600 1.8334 0.4854 1.1910 0.8396 3.1836 2.6730 0.3141 1.2625 0.7921 4.3746 3.4651 0.2286 1.3382 0.7473 5.6371 4.2124 0.1774 1.4185 0.7050 6.9753 4.9173 0.1434 1.5036 0.6651 8.3938 5.5824 0.1191 1.5938 0.6274 9.8975 6.2098 0.1010 1.6895 0.5919 11.4913 6.8017 0.0870 1.7908 0.5584 13.1808 7.3601 0.0759 Capital Recovery Factor To Find A Given P AIP 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 0.1470 0.1359 3 4 5 6 7 8 9 10 Print Done Problem 9-20 (algorithmic) Rended where more produtive real 000 weds MV 10.000 end of the synon restoran of MACRS (GOSdeprecalentat property.com ww The event was decor marione) by 800 fot year and we expected to create yrach w where you have prema so res for a $15.000. The world war. There is on De reprive for a crew can lewe wat bered the engine could potom dorty towy Aneta wer MARRI pewned on the should you replace to feeder wecharger une Die o to vo vyhyer property Click the icon weerstand anruty table de company when the MARS Fan with the resour A gre x More Info GDS Recovery Rates (tk) Year 5-year Property Class 1 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 AWN Print Done x * More Info N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; 1= 6% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0600 0.9434 1.0000 0.9434 1.0000 1.1236 0.8900 2.0600 1.8334 0.4854 1.1910 0.8396 3.1836 2.6730 0.3141 1.2625 0.7921 4.3746 3.4651 0.2286 1.3382 0.7473 5.6371 4.2124 0.1774 1.4185 0.7050 6.9753 4.9173 0.1434 1.5036 0.6651 8.3938 5.5824 0.1191 1.5938 0.6274 9.8975 6.2098 0.1010 1.6895 0.5919 11.4913 6.8017 0.0870 1.7908 0.5584 13.1808 7.3601 0.0759 Capital Recovery Factor To Find A Given P / 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 0.1470 0.1359 Print Done our ed: It is being decided whether or not to replace an existing piece of equipment with a newer, more productive one that costs $80,000 and has an estimated MV of $19.000 at the end of its useful life of six years. Installation charges for the new equipment wil amount to $2,500; this is not added to the capital investment but will be an expensed item during the first year of operation MACRS (GDS) depreciation (5-year property class) will be used. The new equipment will reduce direct costs (abor, maintenance, rework, etc.) by 59,000 in the first year, and this amount is expected to increase by $600 each year thereafter during its six your life. It is also known that the BV of the fully depreciated old machine is $0 but that its present fair MV is $15,000 The MV of the old machine will be zero in six years. The effective income tax rate is 40% a. Determine the prospective after-tax incremental cash flow associated with the new equipment if it is believed that the existing machine could perform satutactory for six more years b. Assume that the after-tax MARR is 6% per year. Based on the ERR method, should you replace the defender with the challenger Assume MARR. Click the icon to view the GDS Recovery Rates (2) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 6% per you a. Fill in the table below. (Round to the nearest dollar) Incremental Cash Flows A Challenger-Defender) 0 are: issio rec EOY QL GDS Recovery Rates () Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 0.1152 0.0576 Print Done perform = MARR N 1 2 Discrete Compounding; /= 6% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FA PIA AIF 1.0600 0.9434 1.0000 0.9434 1.0000 1.1236 0.8900 2.0600 1.8334 0.4854 1.1910 0.8396 3.1836 2.6730 0.3141 1.2625 0.7921 4.3746 3.4651 0.2286 1.3382 0.7473 5.6371 4.2124 0.1774 1.4185 0.7050 6.9753 4.9173 0.1434 1.5036 0.6651 8.3938 5.5824 0.1191 1.5938 0.6274 9.8975 6.2098 0.1010 1.6895 0.5919 11.4913 6.8017 0.0870 1.7908 0.5584 13.1808 7.3601 0.0759 Capital Recovery Factor To Find A Given P AIP 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 0.1470 0.1359 3 4 5 6 7 8 9 10 Print Done