Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $75,000 and generate delivery revenue of $30,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $60,000. The terms of the loan stipulate that 2% annual interest would be charged and that the loan would be repaid in 6 equal end of year payments. At the end of the 6 years, the vehicle will have a salvage value of $10,000. The tax rate is 40%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co. uses an after-tax MARR of 12%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +10. Should Robinson Co. purchase the new delivery vehicle? No Yes There is not enough information to determine Save for later Attempts: 0 of 1 used Submit Answer 2 3 4 7 8 19 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Enter an interest rate in the yellow cell to calculate factors "n" values can be changed as needed Press F to format small values and large values in scientific notation Time Value of Money Factors 22.60% Discrete Compounding 22.6000% Single Sums Uniform Series Gradient Series To Find F To Find P To Find F To Find A To Find P To Find A To Find P To Find A Given P Given F Given A Given F Given A Given P Given G Given G (FIP %.n) (PF%.n) (FIA % ) (ALF % ) (PIA %.n) KAIP %.n) (P|G%. (ALG%.n 1 1.22600 0.81566 1.00000 1.00000 0.81566 1.22600 0.00000 0.00000 2 1.50308 0.66530 2.22600 0.44924 1.48096 0.67524 0.66530 0.44924 3 1.84277 0.54266 3.72908 0.26816 2 02362 0.49416 1.75062 0.86509 4 2 25924 0.44263 5.57185 0.17947 2.46625 0.40547 3.07851 1.24825 5 2.76983 0.36103 7.83108 0.12770 2 82728 0.35370 4.52264 1.59964 6 3.39581 0.29448 10.60091 0.09433 3.12177 0.32033 5.99505 1.92040 7 4.16326 0.24020 13.99672 0.07145 3.36196 0.29745 7.43622 2.21187 5.10415 0.19592 18.15997 0.05507 3.55788 0.28107 8.80766 2.47553 6.25769 0.15980 23 26413 0.04298 3.71768 0.26898 10.08608 2.71300 10 7.67193 0.13035 29.52182 0.03387 3.84803 0.25987 11.25919 2.92596 11 9.40579 0.10632 37 19375 0.02689 3.95435 0.25289 12.32237 3.11616 12 11.53150 0.08672 46.59954 0.02146 4.04107 0.24746 13.27627 3 28634 13 14.13761 0.07073 58.13103 0.01720 4.11180 0.24320 14.12507 3.43525 14 17.33271 0.05769 72 26865 0.01384 4.16949 0.23984 14.87510 3.56760 15 21.24991 0.04706 89.60136 0.01116 4.21655 0.23716 15.53393 3.68403 16 26.05239 0.03838 110.85127 9.0211E-03 4.25494 0.23502 16.10969 3.78612 17 31.94023 0.03131 136.90366 73044E-03 4.28625 0.23330 16.61063 3.87533 18 39.15872 0.02554 168.84388 5.9226E-03 4.31178 0.23192 17.04476 3.95306 19 48.00859 0.02083 208.00260 4.8076E-03 4.33261 0.23081 17.41969 4.02060 20 58 85853 0.01699 256.01119 3.9061E-03 4.34960 0.22991 17.74250 4.07911 Discrete Compounding Geometric PW Geometric FW Continuous Comp. Discrete Flow Continuous C OC 28 22 29 23 30 24 31 25 32 26 33 27 34 28 35 29 36 30 37 36 38 40 39 48 40 50 41 52 42 55 43 60 44 72 45 75 46 80 47 84 48 90 49 96 50 100 51108 52120 53 132 54144 55 180 56240 57 360 58 480 59600 88.46884 108.46280 132.97539 163.02783 199.87212 245.04322 300.42299 368,31859 451.55859 1533.40518 3464.32643 1.7682E+04 2.6578E+04 3.9949E+04 7.3617E+04 2.0391E+05 2.3513E+06 4.3330E+06 1.2002E+07 2.7114E+07 9.2075E+07 3.1267E+08 7.0639E+08 3.6055E+09 4.1577E+10 4.7945E+11 5.5288E+12 8.4778E+15 1.7287E+21 7.1874E+31 2.9883E+42 1.2425E+53 0.01130 9.2198E-03 7.5202E-03 6.1339E-03 5.0032E-03 4.0809E-03 3.3286E-03 2.7150E-03 2.2146E-03 6.5214E-04 2.8866E-04 5.6553E-05 3.7625E-05 2.5032E-05 1.3584E-05 4.9042E-06 4.2529E-07 2.3079E-07 8.3323E-08 3.6881E-08 1.0861E-08 3.1983E-09 1.4156E-09 2.7735E-10 2.4052E-11 2.0857E-12 1.8087E-13 1.1795E-16 5.7848E-22 1.3913E-32 3.3464E-43 8.0486E-54 387.03028 475.49912 583.96192 716.93731 879.96514 1079.83727 1324 88049 1625.30348 1993.62207 6780.55390 1.5324E+04 7.8237E+04 1.1760E+05 1.7676E+05 3.2573E+05 9.0223E+05 1.0404E+07 1.9172E+07 5.3104E+07 1.1998E+08 4.0741E+08 1.3835E+09 3.1256E+09 1.5954E+10 1.8397E+11 2.1215E+12 2.4464E+13 3.7513E+16 7.6490E+21 3.1802E+32 1.3223E+43 5.4976E+53 2.5838E-03 2.1031E-03 1.7124E-03 1.3948E-03 1.1364E-03 9.2607E-04 7.5479E-04 6.1527E-04 5.0160E-04 1.4748E-04 6.5255E-05 1.2782E-05 8.5036E-06 5.6574E-06 3.0700E-06 1.1084E-06 9.6116E-08 5.2158E-08 1.8831E-08 8.3351E-09 2.4545E-09 7.2281E-10 3.1993E-10 6.2681E-11 5.4357E-12 4.7137E-13 4.0877E-14 2.6658E-17 1.3074E-22 3.1444E-33 7.5628E-44 1.8190E-54 4.37476 4.38398 4.39150 4.39764 4.40264 4.40672 4.41005 4.41277 4.41498 4.42189 4.42350 4.42453 4.42461 4.42467 4.42472 4.42476 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 0.22858 0.22810 0.22771 0.22739 0.22714 0.22693 0.22675 0.22662 0.22650 0.22615 0.22607 0.22601 0.22601 0.22601 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 18.25703 18.45986 18.63283 18.78004 18.90512 19.01123 19.10110 19.17712 19.24134 19.46202 19.52193 19.56555 19.56961 19.57242 19.57510 19.57727 19.57852 19.57859 19.57864 19.57865 19.57866 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 4.17326 4.21075 4.24293 4.27048 4.29404 4.31414 4.33127 4.34583 4.35819 4.40129 4.41323 4.42206 4.42290 4.42348 4.42403 4.42448 4.42475 4.42476 4.42477 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 Continuous Comp. Discrete Flow Continu TABLE 8.2 MACRS-GDS Property Classes Property Class 3-Year Property S-Year Property 7.Year Property Personal Property Qualifying property with a class life of 4 years or less, including tractor units for over-the-road use: special tools for manufacturing motor vehicles: special handling devices for manufacture of food and beverages, and special tools for manufacturing rubber, finished plastic, glass, and fabri- Cated metal products Qualifying property with a class life of more than yours but less than 10 years, including automobiles and light, general purpose trucks; certain research and experimentation equip. ment, alternative energy and biomass property, computers and peripheral equipment: satellite space segment property; data-handling equipment (typewriters, calculators, copiers, printers, facsimile machines, etc.); heavy, general-purpose trucks; timber cutting assets; offshore oil and gas well drilling assets, certain construction assets, computer based telephone central office switching equipment and many assets used for the manufacture of knitted goods, carpets, apparel, medical and dental supplies, chemicals, and electronic components Qualifying property with a class life of 10 or more years but less than 16 years, property without any class life and not included in the 27.5 and 39 year categories, including office furniture, fixtures, and equipment: theme and amusement park assets, assets used in the exploration for and production of petroleum and natural gas deposits: most assets used for manufacturing such things as food products, spun yarn, wood products and furniture, pulp and paper, rubber prod- ucts, finished plastic products, leather products, glass products, foundry products, fabricated metal products, motor vehicles, aerospace products, athletic goods, and jewelry Qualifying property with a class life of 16 or more years but less than 20 years, including vessels, tugs, and similar water transportation equipment, petroleum refining assets; assets used in the manufacture of grain, sugar, vegetable oil products, and substitute natural gas-coal gasification Qualifying property with a class life of 20 or more years but less than 25 years, including land improvements, such as sidewalks, roads, drainage facilities, sewers, bridges, fencing, and land scaping: cement manufacturing assets, some water and pipeline transportation assets, municipal wastewater treatment plants, telephone distribution plant assets certain electric and gas utility property and some liquefied natural gas assets Qualifying property with a class life of 25 years or more, other than real property with a class life of 27.5 years or more plus municipal sewers, including such assets as farm buildings; some railroad structures, some electric generating equipment, such as certain transmission lines, pole lines buried cable, repeaters, and much other utility property Real Property Residential rental property, including a rental home or structure for which dost or more of the grass rental income for the tax year la rental income from dwelling units. A dwelling unit is a house or an apartment used to provide living accommodations in a building or structure, but not a unit in a hotel, motel, inn, or other establishment in which more than one-half of the units are used on a transient basis Nonresidential real property depreciable property with a class life of 275 years or more and that is Hot residential rental property 10-Year Property 15-Year Property 20-Year Property Property Class 27.5 Year Property 39-Year Property TABLE 8.3 MACRS-GDS percentages for 3., 5., 7., and 10-year property are 200% DBSLH and 15-and 20-year property are 150% DBSLH 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Property Property Property Property Property Property 33.33 20.00 14.29 10.00 5.00 3.750 EOY 1 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17:49 14.40 8.55 6.677 4 7.41 11.52 12:49 11.52 7.70 6.177 $ 11.52 8.93 9.22 6.93 5.713 6 576 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6156 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 TABLE 8.4 a. MACRS-GDS percentages for 27.5-year residential rental property using mid-month convention Month in Tax Year Property Placed in Service Year 1 2 3 4 5 6 7 8 9 10 11 12 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.6679 1.364% 1.061% 0.758% 0.455% 0.15296 2-9 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636%6 10-261 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 11-27 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 28 1.970% 2.2734 2.258% 2.879% 3.182% 3.485% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 29 0.152% 0.455% 0.758% 1.061% 1.364% 1.667% b. MACRS-GDS percentages for 39-year nonresidential real property using mid-month convention Month in Tax Year Property Placed in Service Year 1 2 3 4 5 6 7 8 9 10 11 12 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% 2-39 2.564% 2.564% 2.564% 2.564 2.564% 2.5646 2.564% 2.564% 2.564% 2.564% 2.564% 2.564% 40 0.107% 0.321% 0.535% 0.749% 0.963% 1.177% 1.391% 1.605% 1.819% 2.033% 2.247% 2.461% *Even-numbered year. **Odd-numbered year. Robinson Co. is interested in purchasing a new delivery vehicle so it can become a subcontractor with Amazon Logistics. The vehicle would cost $75,000 and generate delivery revenue of $30,000 for each of the next 6 years. If Robinson Co. purchases the vehicle, it will take a loan for $60,000. The terms of the loan stipulate that 2% annual interest would be charged and that the loan would be repaid in 6 equal end of year payments. At the end of the 6 years, the vehicle will have a salvage value of $10,000. The tax rate is 40%. Assuming that the vehicle is depreciated using MACRS (5-year property class) and that Robinson Co. uses an after-tax MARR of 12%, compute the PW and determine whether Robinson Co. should purchase the new business vehicle. Click here to access the TVM Factor Table calculator Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is +10. Should Robinson Co. purchase the new delivery vehicle? No Yes There is not enough information to determine Save for later Attempts: 0 of 1 used Submit Answer 2 3 4 7 8 19 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Enter an interest rate in the yellow cell to calculate factors "n" values can be changed as needed Press F to format small values and large values in scientific notation Time Value of Money Factors 22.60% Discrete Compounding 22.6000% Single Sums Uniform Series Gradient Series To Find F To Find P To Find F To Find A To Find P To Find A To Find P To Find A Given P Given F Given A Given F Given A Given P Given G Given G (FIP %.n) (PF%.n) (FIA % ) (ALF % ) (PIA %.n) KAIP %.n) (P|G%. (ALG%.n 1 1.22600 0.81566 1.00000 1.00000 0.81566 1.22600 0.00000 0.00000 2 1.50308 0.66530 2.22600 0.44924 1.48096 0.67524 0.66530 0.44924 3 1.84277 0.54266 3.72908 0.26816 2 02362 0.49416 1.75062 0.86509 4 2 25924 0.44263 5.57185 0.17947 2.46625 0.40547 3.07851 1.24825 5 2.76983 0.36103 7.83108 0.12770 2 82728 0.35370 4.52264 1.59964 6 3.39581 0.29448 10.60091 0.09433 3.12177 0.32033 5.99505 1.92040 7 4.16326 0.24020 13.99672 0.07145 3.36196 0.29745 7.43622 2.21187 5.10415 0.19592 18.15997 0.05507 3.55788 0.28107 8.80766 2.47553 6.25769 0.15980 23 26413 0.04298 3.71768 0.26898 10.08608 2.71300 10 7.67193 0.13035 29.52182 0.03387 3.84803 0.25987 11.25919 2.92596 11 9.40579 0.10632 37 19375 0.02689 3.95435 0.25289 12.32237 3.11616 12 11.53150 0.08672 46.59954 0.02146 4.04107 0.24746 13.27627 3 28634 13 14.13761 0.07073 58.13103 0.01720 4.11180 0.24320 14.12507 3.43525 14 17.33271 0.05769 72 26865 0.01384 4.16949 0.23984 14.87510 3.56760 15 21.24991 0.04706 89.60136 0.01116 4.21655 0.23716 15.53393 3.68403 16 26.05239 0.03838 110.85127 9.0211E-03 4.25494 0.23502 16.10969 3.78612 17 31.94023 0.03131 136.90366 73044E-03 4.28625 0.23330 16.61063 3.87533 18 39.15872 0.02554 168.84388 5.9226E-03 4.31178 0.23192 17.04476 3.95306 19 48.00859 0.02083 208.00260 4.8076E-03 4.33261 0.23081 17.41969 4.02060 20 58 85853 0.01699 256.01119 3.9061E-03 4.34960 0.22991 17.74250 4.07911 Discrete Compounding Geometric PW Geometric FW Continuous Comp. Discrete Flow Continuous C OC 28 22 29 23 30 24 31 25 32 26 33 27 34 28 35 29 36 30 37 36 38 40 39 48 40 50 41 52 42 55 43 60 44 72 45 75 46 80 47 84 48 90 49 96 50 100 51108 52120 53 132 54144 55 180 56240 57 360 58 480 59600 88.46884 108.46280 132.97539 163.02783 199.87212 245.04322 300.42299 368,31859 451.55859 1533.40518 3464.32643 1.7682E+04 2.6578E+04 3.9949E+04 7.3617E+04 2.0391E+05 2.3513E+06 4.3330E+06 1.2002E+07 2.7114E+07 9.2075E+07 3.1267E+08 7.0639E+08 3.6055E+09 4.1577E+10 4.7945E+11 5.5288E+12 8.4778E+15 1.7287E+21 7.1874E+31 2.9883E+42 1.2425E+53 0.01130 9.2198E-03 7.5202E-03 6.1339E-03 5.0032E-03 4.0809E-03 3.3286E-03 2.7150E-03 2.2146E-03 6.5214E-04 2.8866E-04 5.6553E-05 3.7625E-05 2.5032E-05 1.3584E-05 4.9042E-06 4.2529E-07 2.3079E-07 8.3323E-08 3.6881E-08 1.0861E-08 3.1983E-09 1.4156E-09 2.7735E-10 2.4052E-11 2.0857E-12 1.8087E-13 1.1795E-16 5.7848E-22 1.3913E-32 3.3464E-43 8.0486E-54 387.03028 475.49912 583.96192 716.93731 879.96514 1079.83727 1324 88049 1625.30348 1993.62207 6780.55390 1.5324E+04 7.8237E+04 1.1760E+05 1.7676E+05 3.2573E+05 9.0223E+05 1.0404E+07 1.9172E+07 5.3104E+07 1.1998E+08 4.0741E+08 1.3835E+09 3.1256E+09 1.5954E+10 1.8397E+11 2.1215E+12 2.4464E+13 3.7513E+16 7.6490E+21 3.1802E+32 1.3223E+43 5.4976E+53 2.5838E-03 2.1031E-03 1.7124E-03 1.3948E-03 1.1364E-03 9.2607E-04 7.5479E-04 6.1527E-04 5.0160E-04 1.4748E-04 6.5255E-05 1.2782E-05 8.5036E-06 5.6574E-06 3.0700E-06 1.1084E-06 9.6116E-08 5.2158E-08 1.8831E-08 8.3351E-09 2.4545E-09 7.2281E-10 3.1993E-10 6.2681E-11 5.4357E-12 4.7137E-13 4.0877E-14 2.6658E-17 1.3074E-22 3.1444E-33 7.5628E-44 1.8190E-54 4.37476 4.38398 4.39150 4.39764 4.40264 4.40672 4.41005 4.41277 4.41498 4.42189 4.42350 4.42453 4.42461 4.42467 4.42472 4.42476 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 0.22858 0.22810 0.22771 0.22739 0.22714 0.22693 0.22675 0.22662 0.22650 0.22615 0.22607 0.22601 0.22601 0.22601 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 0.22600 18.25703 18.45986 18.63283 18.78004 18.90512 19.01123 19.10110 19.17712 19.24134 19.46202 19.52193 19.56555 19.56961 19.57242 19.57510 19.57727 19.57852 19.57859 19.57864 19.57865 19.57866 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 19.57867 4.17326 4.21075 4.24293 4.27048 4.29404 4.31414 4.33127 4.34583 4.35819 4.40129 4.41323 4.42206 4.42290 4.42348 4.42403 4.42448 4.42475 4.42476 4.42477 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 4.42478 Continuous Comp. Discrete Flow Continu TABLE 8.2 MACRS-GDS Property Classes Property Class 3-Year Property S-Year Property 7.Year Property Personal Property Qualifying property with a class life of 4 years or less, including tractor units for over-the-road use: special tools for manufacturing motor vehicles: special handling devices for manufacture of food and beverages, and special tools for manufacturing rubber, finished plastic, glass, and fabri- Cated metal products Qualifying property with a class life of more than yours but less than 10 years, including automobiles and light, general purpose trucks; certain research and experimentation equip. ment, alternative energy and biomass property, computers and peripheral equipment: satellite space segment property; data-handling equipment (typewriters, calculators, copiers, printers, facsimile machines, etc.); heavy, general-purpose trucks; timber cutting assets; offshore oil and gas well drilling assets, certain construction assets, computer based telephone central office switching equipment and many assets used for the manufacture of knitted goods, carpets, apparel, medical and dental supplies, chemicals, and electronic components Qualifying property with a class life of 10 or more years but less than 16 years, property without any class life and not included in the 27.5 and 39 year categories, including office furniture, fixtures, and equipment: theme and amusement park assets, assets used in the exploration for and production of petroleum and natural gas deposits: most assets used for manufacturing such things as food products, spun yarn, wood products and furniture, pulp and paper, rubber prod- ucts, finished plastic products, leather products, glass products, foundry products, fabricated metal products, motor vehicles, aerospace products, athletic goods, and jewelry Qualifying property with a class life of 16 or more years but less than 20 years, including vessels, tugs, and similar water transportation equipment, petroleum refining assets; assets used in the manufacture of grain, sugar, vegetable oil products, and substitute natural gas-coal gasification Qualifying property with a class life of 20 or more years but less than 25 years, including land improvements, such as sidewalks, roads, drainage facilities, sewers, bridges, fencing, and land scaping: cement manufacturing assets, some water and pipeline transportation assets, municipal wastewater treatment plants, telephone distribution plant assets certain electric and gas utility property and some liquefied natural gas assets Qualifying property with a class life of 25 years or more, other than real property with a class life of 27.5 years or more plus municipal sewers, including such assets as farm buildings; some railroad structures, some electric generating equipment, such as certain transmission lines, pole lines buried cable, repeaters, and much other utility property Real Property Residential rental property, including a rental home or structure for which dost or more of the grass rental income for the tax year la rental income from dwelling units. A dwelling unit is a house or an apartment used to provide living accommodations in a building or structure, but not a unit in a hotel, motel, inn, or other establishment in which more than one-half of the units are used on a transient basis Nonresidential real property depreciable property with a class life of 275 years or more and that is Hot residential rental property 10-Year Property 15-Year Property 20-Year Property Property Class 27.5 Year Property 39-Year Property TABLE 8.3 MACRS-GDS percentages for 3., 5., 7., and 10-year property are 200% DBSLH and 15-and 20-year property are 150% DBSLH 3-Year 5-Year 7-Year 10-Year 15-Year 20-Year Property Property Property Property Property Property 33.33 20.00 14.29 10.00 5.00 3.750 EOY 1 2 44.45 32.00 24.49 18.00 9.50 7.219 3 14.81 19.20 17:49 14.40 8.55 6.677 4 7.41 11.52 12:49 11.52 7.70 6.177 $ 11.52 8.93 9.22 6.93 5.713 6 576 8.92 7.37 6.23 5.285 7 8.93 6.55 5.90 4.888 8 4.46 6.55 5.90 4.522 9 6156 5.91 4.462 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 TABLE 8.4 a. MACRS-GDS percentages for 27.5-year residential rental property using mid-month convention Month in Tax Year Property Placed in Service Year 1 2 3 4 5 6 7 8 9 10 11 12 1 3.485% 3.182% 2.879% 2.576% 2.273% 1.970% 1.6679 1.364% 1.061% 0.758% 0.455% 0.15296 2-9 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636%6 10-261 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 3.637% 11-27 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 28 1.970% 2.2734 2.258% 2.879% 3.182% 3.485% 3.636% 3.636% 3.636% 3.636% 3.636% 3.636% 29 0.152% 0.455% 0.758% 1.061% 1.364% 1.667% b. MACRS-GDS percentages for 39-year nonresidential real property using mid-month convention Month in Tax Year Property Placed in Service Year 1 2 3 4 5 6 7 8 9 10 11 12 1 2.461% 2.247% 2.033% 1.819% 1.605% 1.391% 1.177% 0.963% 0.749% 0.535% 0.321% 0.107% 2-39 2.564% 2.564% 2.564% 2.564 2.564% 2.5646 2.564% 2.564% 2.564% 2.564% 2.564% 2.564% 40 0.107% 0.321% 0.535% 0.749% 0.963% 1.177% 1.391% 1.605% 1.819% 2.033% 2.247% 2.461% *Even-numbered year. **Odd-numbered year