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 1: 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 C D E F J K L EOY 0 1 2 AA BB CC A B 600,000 510,000 60,000 433,500 108,000 368,475 86,700 313,204 73,695 266,223 62,641 226,290 53,245 192,346 45,258 163,494 38,469 DD 80,000 92,000 105,800 121,670 139,921 160,909 185,045 212,802 5 6 7 8 FF GG 9. The dollar amount of cell DD (nearest 100) is a) 15,800; b) 16,600; c) 17,800, d) 17,900. 10. The dollar amount of cell EE (nearest 100) is a) 221,800; b) 229,600; c) 243,300, d) 254,300. 11. The dollar amount of cell FF (nearest 100) is a) 54,800; b) 59,900; c) 61,600, d) 64,700. 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 1: 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 C D E F J K L EOY 0 1 2 AA BB CC A B 600,000 510,000 60,000 433,500 108,000 368,475 86,700 313,204 73,695 266,223 62,641 226,290 53,245 192,346 45,258 163,494 38,469 DD 80,000 92,000 105,800 121,670 139,921 160,909 185,045 212,802 5 6 7 8 FF GG 9. The dollar amount of cell DD (nearest 100) is a) 15,800; b) 16,600; c) 17,800, d) 17,900. 10. The dollar amount of cell EE (nearest 100) is a) 221,800; b) 229,600; c) 243,300, d) 254,300. 11. The dollar amount of cell FF (nearest 100) is a) 54,800; b) 59,900; c) 61,600, d) 64,700