Question list K O Question 1 The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $19,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses, and interest rates. Click the icon to view the GDS Recovery Rates (k). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 13% per year. O Question 2 Complete the blank cells in the table below. (Round to the nearest dollar.) Question 3 BTCF, $ Depreciation, $ Taxable Income, $ Income Tax (29%), $ ATCF, $ e Info 0 1 87,000 2 87,000 Purchase price $300,000 3 87,000 Delivery charge $5,800 87,000 Installation cost $34,000 Employee training $10,000 5 87,000 5 19,000 1 -4,942 -24,936 94,231 -5,753 66,852 - 19,387 0 Increased annual revenue $116,000 Increased annual expenses $29,000 After-tax MARR 13% Effective tax rate 29% Sales price of the tool in yr. 5 $19,000 Projected salvage value in yr. 5 $10,000