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tax MARR of 7% per year, and effective tax rate (T.) of 50 %. Two new The ABC Company uses the after- machines have the

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tax MARR of 7% per year, and effective tax rate (T.) of 50 %. Two new The ABC Company uses the after- machines have the following estimates: 7% per hine B First cost (S) Annualoperating cost (S/year) Salvage value (5) Life (years) 15,000 3,000 3.000 10 22.000 1,500 5.000 10 is retained in use for 10 years, and then sold for the estimated salvage value, the tables below to find the cash flow after-tax (CFAT) using the straight-ine depreciation a. Complete method over the 10-year life Select one of the machines using the after-tax PW analysis at MARR of 7% per year. b. Machine A Initial CFBT Depreciatio Taxable Taxes CFAT (S Year Gross Expenses n ($) Income () Income (S) Investment or (S) Salvage (S) -15,000 1 to 10 10 3,000 3,000 Machine B Year GrosEspnital CFBT Depreciatio axable Taxes CFAT (S) Income( Investment or () n (S) Income (S) (SSalvage (S) 22,000 l to 10 10 1,5000 5,000

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