Question 8 PartA A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part A: Choose the correct Before Tax Cash Flow Diagram for this scenario from the following choices. Option A 220,000 220,000 54000 +25X Option C Option D i=1296 Question 8 Part B A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part B: For years 1 - 8, what is the Before-Tax Cash Flow (BTCF) value to be used? O 25X-54000 O 54000+25X O -54000-25X O 54000-25X Question 8 Part C A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part C: For years 1 - 8, what is the straight-line depreciation (SL Dn) value to be used? O 220000 O 6750 O 3.13 O 27500 Question 8 Part D A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benefit of $54,000. Each use of the equipment will also provide a benefit of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part D: For years 1 - 8, what is the taxable-income (TI) value to be used O 26500+25X O 26500+31X O 47250- 25X O 47250+25XQuestion 8 Part E A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part E: For years 1 - 8, what is the income tax value to be used? O 26500+6X O 12960+250.Z4X O 6360-60X O 6360+6X Question 8 Part F A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part F: For years 1 - 8, what is the After-Tax Cash Flow (ATCF) value to be used? 0 6360 - 19X 0 47640+31X 0 20140 - 19X 0 47640+19X Question 8 Part G A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part G: What is the correct break-even equation setup? 0 -22000O(P/A, 12%, 8)+20140-19X = O O -22000O(P/A, 12%, 8)+47640+19X = O O -220000(A/P, 12%, 8)+47640+19X = 0 O -22000O(A/P, 12%, 8)+47640+31X = 0 Question 8 Part H A large company is planning to purchase equipment costing $220,000 and will depreciate it fully using straight-line depreciation over 8 years. The company expects that the investment will have an annual benet of $54,000. Each use of the equipment will also provide a benet of $25. In 5 years, there will be no salvage value for the equipment. The company's combined marginal tax rate is 24%. Based on 12% after-tax MARR, how many uses of the equipment must the company have each year in order to justify its investment? Question 8 Part H: What is the break-even value