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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

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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 I: 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 15 C D E F G EOY 0 ! JK L 1 EE FF 2 3 4 5 6 7 8 B 690,000 586,500 51,750 498,525 95,738 423,746 81,377 360,184 69,170 306,157 58,795 260,233 49,976 221,198 42,479 188,018 36,107 85,000 102,000 122,400 GG HH 146,880 176,256 211,507 253,809 304,570 II JJ KK LL MM After-Tax MARR = 6%; DB Depreciation Rate = 15%; Income Tax Rate = 40% 10. The dollar value of cell ll is 11. The dollar value of cell JJ is 12. The dollar value of cell KK is 13. The dollar value of cell LL is 14. The dollar value of cell MM is 15. The after-tax economic life (full year) of the challenger is 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 I: 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 15 C D E F G EOY 0 ! JK L 1 EE FF 2 3 4 5 6 7 8 B 690,000 586,500 51,750 498,525 95,738 423,746 81,377 360,184 69,170 306,157 58,795 260,233 49,976 221,198 42,479 188,018 36,107 85,000 102,000 122,400 GG HH 146,880 176,256 211,507 253,809 304,570 II JJ KK LL MM After-Tax MARR = 6%; DB Depreciation Rate = 15%; Income Tax Rate = 40% 10. The dollar value of cell ll is 11. The dollar value of cell JJ is 12. The dollar value of cell KK is 13. The dollar value of cell LL is 14. The dollar value of cell MM is 15. The after-tax economic life (full year) of the challenger is

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