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Tha Please help with this question, and show explanation where needed! Thanks! A new machine is estimated to cost $200,000 and reduce net annual operating
ThaPlease help with this question, and show explanation where needed!
Thanks!
A new machine is estimated to cost $200,000 and reduce net annual operating expenses by S36,000 for 10 years and have a market value of S30,000 at the end of the 10h year. Assume the firm is in the $335k-$10M taxable income bracket and the state tax rate is 6%. The machine is MACRS 7-year property class. The after-tax MARR is 10%/year. Prepare excel file to perform the following a. Calculate the before-tax and after-tax IRR b. Calculate the after-tax PWW c. Perform parts a and b using straight line depreciation. d. Perform parts a and b using DDB depreciation. A new machine is estimated to cost $200,000 and reduce net annual operating expenses by S36,000 for 10 years and have a market value of S30,000 at the end of the 10h year. Assume the firm is in the $335k-$10M taxable income bracket and the state tax rate is 6%. The machine is MACRS 7-year property class. The after-tax MARR is 10%/year. Prepare excel file to perform the following a. Calculate the before-tax and after-tax IRR b. Calculate the after-tax PWW c. Perform parts a and b using straight line depreciation. d. Perform parts a and b using DDB depreciation
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