Section 2: After-Tax Analysis of the Challenger (New Press) Details: 1. Initial cost (before taxes)-$600,000. 2. After-Tax MARR-6% 3. Depreciation Rate-20% 4. Income tax rate-40% 5. Inflation rate=0%. 6. Salvage values and annual expenses (O+M) as shown in the table. Table Column Headings A: Before-Tax Market Value of the equipment. B: Annual Depreciation C: Book Value D: Recaptured Depreciation E: Taxes Payable or Tax Savings on Recaptured Depreciation F: After-Tax Market Value Column A - Column E G: After-Tax Capital Recovery H: Tax Savings due to Depreciation Charges : Before-Tax Operating Expenses J: After-Tax Operating Expenses K: Annual Cost for year "n" L: After-Tax AEW if truck is kept "n" years. After-Tax Analysis A D JK C L 0 600,000 510,000 60,000 2 A 80,000 92,000 105,800 121,670 433,500 108,000 BB 368,475 86,700 4 313,204 73,695 266,223 62,641 6 DD EE 139,921 160,909 GG 185,045 226,290 53,245 192,346 45,258 163,494 38,469 FF 1| 7 212,802 HI CO 6 The dollar amount of cell AA (nearest 100) is a) 540,000; b) 550,000; c) 560,000; d) 570,100 7 The dollar amount of cell BB (nearest 100) is a) 393,600; b) 432,000; c) 452,900; d) 459,300 8 The dollar amount of cell CC (nearest 100 dollars) is a) 299,100; b) 310,100; c) 322,300; d) 345,300