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Section 3: Capital Tax Factor Analysis of the Challenging Press Details: 1. Initial cost (before taxes)=$600,000. 2. After-Tax MARR=6%. 3. Depreciation Rate=20% 4. Income tax

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Section 3: Capital Tax Factor Analysis of the Challenging 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. EOY Before-Tax Market Value Before-Tax Operating Expenses 0 600,000 510,000 80,000 433,500 92,000 368,475 105,800 313,204 121,670 266,223 139,921 226,290 160,909 192,346 185,045 163,494 212,802 16. The capital tax factor (CTF) with the half-year rule (4 decimals, no rounding) is a) 0.6923; b) 0.7010; c) 0.7133, d) 0.7353 17. The capital salvage factor (CSF) (4 decimals; no rounding) is a) 0.6923; b) 0.7010; c) 0.7133, d) 0.7353 18. The cost of keeping the challenging press (nearest $100) one year is a) 122,700; b) 128,400, c) 131,100; d) 140,800 Section 3: Capital Tax Factor Analysis of the Challenging 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. EOY Before-Tax Market Value Before-Tax Operating Expenses 0 600,000 510,000 80,000 433,500 92,000 368,475 105,800 313,204 121,670 266,223 139,921 226,290 160,909 192,346 185,045 163,494 212,802 16. The capital tax factor (CTF) with the half-year rule (4 decimals, no rounding) is a) 0.6923; b) 0.7010; c) 0.7133, d) 0.7353 17. The capital salvage factor (CSF) (4 decimals; no rounding) is a) 0.6923; b) 0.7010; c) 0.7133, d) 0.7353 18. The cost of keeping the challenging press (nearest $100) one year is a) 122,700; b) 128,400, c) 131,100; d) 140,800

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