QUESTION 5 9 points Save Answer A company, based in the Midwest, requires an 8.000%% after tax rate of return, The state tax rate is 5% and the company is in the 21% federal tax bracket. Using the combined incremental tax rate equation on p. 433 of the textbook and the after-tax rate of return equation on p. 439, what is the estimate of the before-tax rate of return required, Give rate of return in percent to 3 decimal places like 10.134% or 9.7656 For the toolbar, press ALT+F10 [PC] or ALT . FN.IF 10 (Mac) B I Y S Paragraph Open Sans, saw 10ptA business must choose between three alternatives that each have a 5-year life. Alternative X has a cost of $611 and annual benefit of $159. Alternative Y has a cost of $498 and annual benefit of $138. Alternative Z has a cost of $211 and annual benefit of $69. Assume the MARR is 8.000%% and use annual benefit-cost ratio analysis. Which alternative should the business select? What was the last incremental B/C ratio you used to make the selection? Give ratio to 3 decimal places, like 0.954 or 1.761 For the toolbar, press ALT+F10 (PC] of ALT+FN + F10 (Mac). BIYS Paragraph Open Sans, sa.. 1Opt EVE A A I XOBQ6P53560 .QUESTION 3 12 points Save Ariswes WhizBang, Inc. is considering the following projects, in the table below, to improve their facilities. Their product has a limited life, so a 4-year horizon is used in evaluation. Which projects should be done if the budget is $96.000? What is the opportunity cost of capital (to 3 decimal places like 1.892% or 21.346%)? Project First Cost Benefit $20.000 $11.000 $35,000 $12,000 3 $10,000 $6.000 $8,000 $2.400 5 $25,000 $13,000 6 $15.000 $7.000 7 $40.000 $21.000 For the toolbar, press ALT F10 (PC] or ALT+EN +FID ( Mac). BTUS Paragraph C pan Sans.an 10ptQUESTION 4 12 points Save Answer Two projects are being considered and are mutually exclusive. Both have lives of 5 years. Project A has a first cost of $2,500 and annual benefits of $746. Project B has a first cost of $5,000 and annual benefits of $1464. Assume the MARR is 8.000% and use an incremental ROR analysis. What should be selected? What is the incremental rate of return between the projects (to 3 decimal places like 8.1450% or 12.671%)? For the toolbar, press ALT-F10 (PC) or ALT+FN. F10 (Mac]. B I Y S Paragraph Open Sans.sa., 10ptQUESTION 1 12 points 5av Answer Tommy started a savings account today by depositing $1000 and then deposited $500 for next year (Year 1). Furthermore, Tommy deposits into the same account $30 for Year 2 and then increases each new yearly deposit by $30 (so Year 3 = $60) through Year 25. Assuming an interest rate of 4.8%, what is the equivalent uniform amount of this investment if paid out from Year 1 through Year 10 (to the closest dollar)? For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac) B I U S Paragraph Open Sans,sa. 1opt AQUESTION 7 7 points Save Ansiver During the construction of a highway bypass, earth-moving equipment costing $40,000 was purchased for use in transporting fill from the borrow pit. At the end of the 4 year project, the equipment will be sold for $20.000. The schedule for moving fill calls for a total of 100,000 cubic feet during the project. In the first year, 409% of the total fill is required; in the second year, 309%; In the third year, 25%; and in the final year, the remaining 5%. What is the units-of-production depreciation for the fourth year for the equipment (to the closest dollar)? For the toolbar, press ALT+F10 (PC] of ALT+FN+F10 (Mac) B I Y S Paragraph Open Sans.sa.. 10pt A Find and ReplaceQUESTION 9 12 points Save AFSHIn The initial cost for a laser cutter is $12,000. It is anticipated that its market value at the end of any year will be 18% less than its market value at the end of that year, In other words, Its market value is reduced by 181% each year, The repair costs are covered by the warranty in Year 1. However, the repair cost in Year 2 is $500 and increases by $500 each year. This company has an MARR of 1545. What is the minimum EVAC (to the closest dollar) of this cutter? For the toolbar, poass ALT+F10(PC)or ALTEN+F10 (Mac) B I Y S Paragraph Open Sans sa... 10ptQUESTION 6 12 points Candy, Inc. is considering the installation of a new sugar delivery mechanism that costs $145,000. This mechanism is expected to save them $32,000 per year in labor costs for the next 15 years. Maintenance costs are expected to average $8,000 per year. Use straight-line depreciation and assume $0 salvage value. The total income tax rate is 349% (federal, state, and municipal). What is the after-tax rate of return for this mechanism? Give rate of return in percent to 3 decimal places like 8.7669% or 25.87996 For the toolbar, press ALT F10 (PC) or ALT.EN+F10 (Mack B I Y S Paragraph Open Sans.sam 1Opt