Please solve both parts of the quistion. Please ignore where the quistion says " problem 5-8".

Please note that the property is 7 years property for the MACRS since it is office equipment.

Please solve clearly showing all steps.

If you use excel, please show the formula.

Please solve all parts.

Thanks ,

A firm purchased some office equipment for a total cost of $300000. The equipment generated net income of $100000 per year. The firm's marginal tax rate is 20%. The equipment was sold at the end of the 4th year for a total of $75000. Assume that MARR is 12%/year. Calculate the net present worth (NPW) of this investment for problems 5-8. 7(15 points). If the firm used the DDB depreciation, NPW = $23700 $25750 $27440 $29400 8 (15 points). If the firm used the MACRS depreciation, NPW = $22300 $24640 $26750 $ $29800 A firm purchased some office equipment for a total cost of $300000. The equipment generated net income of $100000 per year. The firm's marginal tax rate is 20%. The equipment was sold at the end of the 4th year for a total of $75000. Assume that MARR is 12%/year. Calculate the net present worth (NPW) of this investment for problems 5-8. 7(15 points). If the firm used the DDB depreciation, NPW = $23700 $25750 $27440 $29400 8 (15 points). If the firm used the MACRS depreciation, NPW = $22300 $24640 $26750 $ $29800