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Shoe Building Inc. (SBI) is considering the purchase of new manufacturing equipment that will cost $20,000 (including shipping and installation). SBI can take out a

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Shoe Building Inc. (SBI) is considering the purchase of new manufacturing equipment that will cost $20,000 (including shipping and installation). SBI can take out a four-year, $20,000 loan to pay for the equipment at an interest rate of 4.80%. The loan and purchase agreements will also contain the following provisions: The annual maintenance expense for the equipment is expected to be $200. The equipment has a four-year depreciable life. The Modified Accelerated Cost Recovery System's (MACRS) depreciation rates for a three-year asset are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. The corporate tax rate for SBI is 45%. Note: Shoe Building Inc. (SBI) is allowed to take a full-year depreciation tax-saving deduction in the first year. Based on the preceding information, complete the following tables: Value Annual loan payment will be: Annual tax savings from maintenance will be: Shoe Building Inc. (SBI) is considering the purchase of new manufacturing equipment that will cost $20,000 (including shipping and installation). SBI can take out a four-year, $20,000 loan to pay for the equipment at an interest rate of 4.80%. The loan and purchase agreements will also contain the following provisions: The annual maintenance expense for the equipment is expected to be $200. The equipment has a four-year depreciable life. The Modified Accelerated Cost Recovery System's (MACRS) depreciation rates for a three-year asset are 33.33%, 44.45%, 14.81%, and 7.41%, respectively. The corporate tax rate for SBI is 45%. Note: Shoe Building Inc. (SBI) is allowed to take a full-year depreciation tax-saving deduction in the first year. Based on the preceding information, complete the following tables: Value Annual loan payment will be: Annual tax savings from maintenance will be

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