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Please spreadsheet w/ steps, engineering economy An asset for drilling was purchased and placed in service by a petroleum production company Its cost basis is

image text in transcribedPlease spreadsheet w/ steps, engineering economy
An asset for drilling was purchased and placed in service by a petroleum production company Its cost basis is $60,000, and it has an estimated SV of $12,000 at the end of an estimated useful life of 10 years. During the depreciable life, it is estimated the firm will save $16,000 per year after all the costs of owning and operating the asset have been paid. Assume an Effective Income Tax Rate of 0.3 and an After-tax MARR of 10%. Part 1: Compute the depreciation amount and the BV at the end of each year of life by each of these methods a) The SL method. b) The 200% DB method. c) The GDS. Part 2: For each of the aforementioned depreciation systems, conduct an After Tax Cash Flow Analysis W and IRR methods to determine whether the project (after taxes have been considered) is economically attractive

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