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Section 2: Tabular After-Tax Analysis Equipment Details 1. Initial cost-$800,000. 2. After-Tax MARR=6%. 3. Depreciation Tayo-25% 4 Income tax rate-60%. 5. Inflation rato-016. 6. Salvage

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Section 2: Tabular After-Tax Analysis Equipment Details 1. Initial cost-$800,000. 2. After-Tax MARR=6%. 3. Depreciation Tayo-25% 4 Income tax rate-60%. 5. Inflation rato-016. 6. Salvage values and annual expenses (0+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 I: Before-Tax Operating Expenses J: Aftor-Tax Operating Expenses K: Annual Cost for year "n" L: After-Tax AEW if truck is kopt "n" years. After-Tax Analysis 0 800,000 720,000 100,000 AA 648,000 | 175,000 | | BB 70,000 80,500 92,575 106,461 122,430 3583,200 162000 cc 4 524,880 145,800 472,392 131,220 6 425,153 118,098 7382638 106,288 8 344,374 95,659 FF 140,7995 161.914 GG 186,201 HH 31Page

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