Recall the SMP (Surface Mount Placement) machine example referenced throughout the video Examples on MyCourses. Assume given values are before-tax cash flows. Determine the after-tax A) PW, B) FW, C) AW and D) IRR. The SMP machine is a 5-year property for MACRS depreciation. Use a 40% income-tax rate and and 10% after-tax MARR.

Home Insert Page Layout Formulas Data Review View Insert Calibri General Delete Conditional Format Cell Sort & Find & Paste Formatting as Table. Styles Format 2- Filter Select Clipboard F23 A surface mount PCB placement/soldering line for the manufacture ofelectronic components is to be installed for S1.6 million with an expected life of 6 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using MACRS GDS allowances. a. What is the MACRS-GDS property class? b. Assume the line equipment will be sold shortly after the fifth year. Assume the line equipment is sold during the third year of use. 3 Year 5 Year Year 10-Year 15 Year 20 11 a SYear Property EOY Property Property Proper Property Propert Pro $1,600,000 12 b Year Depreciation Book 3.33 20.00 1429 10.00 5.000 $320,000 $1,280,000 4045 32.00 2449 18.00 9.50 2 $512,000 $768,000 14 1481 1920 1749 1440 8.55 $307,200 $460,800 7.41 1152 1249 11.52 7.700 $184,320 $276,480 16 922 693 11.52 8 $184,320 $92,160 17 5.76 892 737 6.23 893 6.55 5.90 $92,160 18 8 446 6.55 5.90 19 c Year Depreciation Book 1 $320,000 $1280,000 6.56 5.91 2 $512,000 $768,000 10 6.55 5.90 3.28 5.91 3 $153,600 $614,400 12 13 24 14 5.90 125 PM Home Insert Page Layout Formulas Data Review View Insert Calibri General Delete Conditional Format Cell Sort & Find & Paste Formatting as Table. Styles Format 2- Filter Select Clipboard F23 A surface mount PCB placement/soldering line for the manufacture ofelectronic components is to be installed for S1.6 million with an expected life of 6 years. Determine the depreciation deduction and the resulting unrecovered investment during each year of the asset's life using MACRS GDS allowances. a. What is the MACRS-GDS property class? b. Assume the line equipment will be sold shortly after the fifth year. Assume the line equipment is sold during the third year of use. 3 Year 5 Year Year 10-Year 15 Year 20 11 a SYear Property EOY Property Property Proper Property Propert Pro $1,600,000 12 b Year Depreciation Book 3.33 20.00 1429 10.00 5.000 $320,000 $1,280,000 4045 32.00 2449 18.00 9.50 2 $512,000 $768,000 14 1481 1920 1749 1440 8.55 $307,200 $460,800 7.41 1152 1249 11.52 7.700 $184,320 $276,480 16 922 693 11.52 8 $184,320 $92,160 17 5.76 892 737 6.23 893 6.55 5.90 $92,160 18 8 446 6.55 5.90 19 c Year Depreciation Book 1 $320,000 $1280,000 6.56 5.91 2 $512,000 $768,000 10 6.55 5.90 3.28 5.91 3 $153,600 $614,400 12 13 24 14 5.90 125 PM