Section 2: After-Tax Analysis of the New Equipment (i.e.. Challenger) 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 of the Challenger: Q6 to Q15 C D E E G H ! JKL EE FF EOY A B 0 690,000 1 586,500 51,750 2 498,525 95,738 3 423,746 81,377 4 360,184 69,170 5 306,157 58,795 6 260,233 49,976 7 221,198 42,479 8 188,018 36,107 HH II 85,000 102,000 122,400 GG 146,880 176,256 211,507 253,809 304,570 JJ KK LL MM After-Tax MARR = 6%; DB Depreciation Rate = 15%; Income Tax Rate = 40% After-Tax Analysis of New Equipment Question 6 (1 point) The dollar value of cell GG is between Question 6 options: 75,000 and 75,600 77,100 and 77,700 C 73,000 and 73,800 71,700 and 72,300 Question 7 (1 point) 3 Page The dollar value of cell KK is Question 7 options: tax savings between 7,000 and 7,900 taxes payable between 8,000 and 8,900 tax savings between 9,000 and 9,900 taxes payable between 6,000 and 6,900 Question 8 (1 point) The after-tax economic life (full year) of the challenger is Question 8 options: C3 2 years 5 Question 9 (1 point) The dollar value of cell EE is between Question 9 options: C 156,000 and 156,900 4 Page 148,000 and 148,900 152,000 and 152,900 154,000 and 154,900 Section 2: After-Tax Analysis of the New Equipment (i.e.. Challenger) 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 of the Challenger: Q6 to Q15 C D E E G H ! JKL EE FF EOY A B 0 690,000 1 586,500 51,750 2 498,525 95,738 3 423,746 81,377 4 360,184 69,170 5 306,157 58,795 6 260,233 49,976 7 221,198 42,479 8 188,018 36,107 HH II 85,000 102,000 122,400 GG 146,880 176,256 211,507 253,809 304,570 JJ KK LL MM After-Tax MARR = 6%; DB Depreciation Rate = 15%; Income Tax Rate = 40% After-Tax Analysis of New Equipment Question 6 (1 point) The dollar value of cell GG is between Question 6 options: 75,000 and 75,600 77,100 and 77,700 C 73,000 and 73,800 71,700 and 72,300 Question 7 (1 point) 3 Page The dollar value of cell KK is Question 7 options: tax savings between 7,000 and 7,900 taxes payable between 8,000 and 8,900 tax savings between 9,000 and 9,900 taxes payable between 6,000 and 6,900 Question 8 (1 point) The after-tax economic life (full year) of the challenger is Question 8 options: C3 2 years 5 Question 9 (1 point) The dollar value of cell EE is between Question 9 options: C 156,000 and 156,900 4 Page 148,000 and 148,900 152,000 and 152,900 154,000 and 154,900