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Posted on Jul 17, 2024

please use the MACRS depreciation amounts given in part b when answerind part C 6. (20) You spend $45,000 for new equipment plus pay $5,000

please use the MACRS depreciation amounts given in part b when answerind part C image text in transcribed

6. (20) You spend $45,000 for new equipment plus pay $5,000 to install it, which is added to the cost basis. Each year for five years, you earned $25,000 from the use of this equipment before subtracting $5,000 in expenses. (a) Using straight-line depreciation over a 5-year lifetime (with a half-year adjustment in years 1 and 6) and a tax rate of 28%, what was your after-tax cash flow (ATCF) in year 3? There is no salvage value. (b) Using the GDS depreciation schedule for a 5-year recovery period, what was your ATCF in year 3? GDS depreciation schedule for a 5-year recovery period year = 1 2 3 4 5 6 factor 0.20 0.32 0.192 0.1152 0.1152 0.0576 (c) If you sold the equipment for $10,000 during year 4 (after year 3), what was the capital gain or loss from this sale. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F FIP P/F 1.005 .9926 1.015 9552 1.023 -9778 1.030 .9706 1.038 9633 1.046 9562 1.054 9490 1.062 .9420 1.070 9350 1.078 19280 1.086 9211 1.094 9142 1.102 9074 1.110 9007 1.119 1940 1.127 8873 1.135 8807 1.144 8742 1.153 8676 1.161 3612 1170 8575 1.179 1.188 1.196 8358 1. 205 8296 1 214 5173 1.233 KI 1.242 ROS 1.251 1.300 1.348 7415 1.431 1.450 683 1.479 70 Sinking Pund Factor Rind A Given F AF 1.0000 .4981 3305 2472 .1970 .1636 .1397 1218 1078 0967 ON 76 0300 0735 0680 0632 0591 0554 0521 0492 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Glven A AP FIA 1.0075 1.000 5056 2.008 3383 3.023 2547 4.045 2045 5.076 -1711 6.114 .1472 7.160 1293 8.213 1153 9.275 .1042 10.344 0951 11.422 0875 12 508 0810 11.602 0755 14.704 0707 15.814 16.932 18.059 0596 19.195 0567 20.339 0540 214491 0516 0495 23 523 0475 25.001 0457 26.159 0440 27.355 25.591 0411 29.505 0397 31.029 Present Worth Factor Find P Given A PIA 0.993 1.978 2.956 3.926 4.889 5.846 6.795 7.737 8.672 9.600 10.521 11.435 12.142 13.243 14.137 15.024 1500 16.779 17.647 TR SON 19.163 20.211 21.053 21.89 22.719 23.542 24.160 35171 25076 26.723 31.447 34 447 10 IRS 41 567 0441 0430 000 21 24 25 26 27 28 0165 150 0322 0310 | 0018 33.500 $1.153 45.447 26 10 0215 01 016 SIS 60.395 50 52 1817 011 010 70 72 1.6 1.73 TI 170 55.472 75425 1621 95.00 10904 1642 5.30 SSKO 532 00012 4 016 2 4 5 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given FP P/F 1.008 9926 1.015 .9852 1.023 9778 1.030 9706 1.038 9633 1.046 9562 1.054 .9.490 1.062 .9420 1.070 9350 1.078 .9280 1.036 9211 1.091 9142 1.102 9074 1.110 9007 1.119 30 1.127 3873 1.135 RS07 6 Sinking Fund Factor Find A Given F A/F 1.0000 .4981 3308 2472 .1970 1636 .1397 1218 1078 0967 0876 OSO 0735 0680 0632 0591 0554 0521 0492 Present Worth Factor Find P Glven A PIA 0.993 1.978 2.956 3.926 4889 3.846 6.795 7.737 8672 9.600 10.521 11:435 12 342 13.243 14 137 15.034 15005 16.779 17.647 18 SON 19 161 9 10 Compound interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Glven P Given A A/P FIA 1.0075 1.000 5056 2.008 3383 3.023 .2547 4.045 2045 5.076 1711 6.114 .1472 7.160 1293 8.213 1153 9.275 .1042 10.144 0951 11.422 75 12. SON OSIO 19.602 0755 14.704 0707 15.814 0666 16.932 0629 18.059 0596 19.195 0567 20.339 050 21.491 0516 0493 23.623 045 25.001 0457 26.180 0440 27355 0425 25591 0411 29.05 0397 3109 0385 1931 0373 1108 41.153 290 46 447 1949 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 8676 8612 8548 1.153 1.161 1.170 1.79 1.IS 1.196 1305 1214 158 5396 21 053 2129 22719 31542 27 2 0441 0420 0400 032 0165 OUSO 0136 0323 0310 09 0233 0215 0174 8173 112 052 7992 7641 7416 CT 25171 4976 26779 31.447 30 36 40 45 50 52 11 1:411 10 TS SOE SLOT 6883 67 17 592 5.14 SS 42.92 14 70 73 NE 1.687 1.7 TIS On 010 010 0091 535 37 OSO 016 LIO RE IN WEES n 1 4 5 6 8 10 11 12 Present Worth Factor Find P Given A P/A 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 6,247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 10.017 10.201 10.371 10.529 10.675 0.3971 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.080 .9259 1.166 .8573 1.260 .7938 1.360 7350 1.469 .6806 1.587 .6302 1.714 5835 1.851 5403 1.999 5002 2.159 .4632 2.332 4289 2.518 2.720 3577 2.937 3405 3.172 3152 3.426 2919 3.700 2703 3.996 2502 4.316 2317 4.661 2145 5.034 1987 5.437 1839 5.871 1703 6.341 1577 6.848 1460 7.396 1352 7.988 1252 8.627 1159 9.317 .1073 10.063 0994 10.868 0930 11.737 0852 12.676 0789 13.600 0730 14.785 0676 2725 0460 11.000 0313 46.002 0213 68.914 05 101257 CHOS Sinking Fund Factor Find A Given F A/F 1.0000 .4808 .3080 2219 1705 1363 .1121 0940 .0801 .0690 ,0601 0527 .0465 .0413 .0368 0330 0296 0267 .0241 0219 .0198 0180 0164 0150 0132 0125 0114 0105 00962 008 14 15 16 17 18 19 20 Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0800 1.000 .5608 2.080 .3880 3.246 .3019 4,506 2505 5.867 -2163 7.336 .1921 8.923 .1740 10.637 .1601 12.488 1490 14.487 1401 16,645 .1327 18.977 1265 21.495 .1213 24.215 1168 27.152 1130 30.324 1096 33.750 1067 37.450 1041 41.446 1019 45.762 .0998 50.423 0980 $5.457 0964 60.893 0950 66.765 0937 73.106 0925 79.954 0914 87.351 0905 95.330 0896 103 966 0888 113283 0881 120.346 0875 134.214 0869 145951 0863 158.627 0858 17217 18 19 259.057 0826 386506 0817 573.771 0812 848.925 OSOS 12513 21 22 23 24 25 26 27 28 20 30 31 10.810 10.935 11.051 11.158 11.258 11.350 11435 11.514 11587 11.655 11.925 12.108 12.213 12319 12177 00811 00745 ORG 00630 00580 00386 0020 00174 0018 ON 14 25 10 45 50 55 60