The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses, and interest rates Click the icon to view the GDS Recovery Rates (PK). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Complete the blank cells in the table below. (Round to the nearest dollar.) EOY Taxable income, BTCF, $ Depreciation, $ $ Income Tax (24%), $ ATCF, $ 0 1 90,000 - 4,080 2 90,000 - 26,800 96,432 3 90,000 OUUOODI -4,781 O DOS OOOOOO 4 90,000 5 90.000 68.976 - 16,554 5 20,000 The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses and interest rates Click the icon to view the GDS Recovery Rates (K). More info Click the icon to view the interest and annuity table for discrete con Complete the blank cells in the table below. (Round to the nearest dolla Purchase price Delivery charge Installation cost Employee training $320,000 $6,000 $29,000 $10,000 Increased annual revenue Increased annual expenses After-tax MARR Effective tax rate Sales price of the tool in yr. 5 Projected salvage value in yr. 5 $120,000 $30,000 10% 24% $20,000 $10,000 Print Done ENGR 335 Engineering Economics Fall 2021 Jospeh Bohlen * 11/11/21 10:35 PM Question 4, Problem 7-3... HW Score: 36.25%, 36.25 of 100 points = Homework: Chapter 7 HW 2 Save More info The CFO of Acme Manufacturing is considering the purchas credit line with the local bank. The CFO has been directed e expenses, some of which was borrowed on a long-term Is this a good investment? Click the icon to view the additional data on the reveny Click the icon to view the GDS Recovery Rates (TK). Click the icon to view the interest and annuity table for Year 1 2 3 4 5 Complete the blank cells in the table below. (Round to the 6 7 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 10 89 pmQBH66NB9% 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 11 12 13 14 15 16 17 18 19 20 Print Done Etext pages Calculator Get more help Clear all Check answer = Homework: Chapter 7 HW 2 Question 4, Problem 7-3... Part 1 of 3 HW Score: 36.25%, 36.25 of 100 points O Points: 0 of 30 Save The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? 5 Click the icon to view the additional data on the revenues, expenses, and interest rates Click the icon to view the GDS Recovery Rates Click the icon to view the interest and annuity t More info Complete the blank cells in the table below. (Round N 1 2 3 Discrete Compounding; i = 10% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 1.7716 0.5645 7.7156 4.3553 0.1296 1.9487 0.5132 9.4872 4.8684 0.1054 2.1436 0.4665 11.4359 5.3349 0.0874 2.3579 0.4241 13.5795 5.7590 0.0736 2.5937 0.3855 15.9374 6.1446 0.0627 Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 4 5 6 7 8 9 10 Print Done Etext pages Calculator Get moic met Clear all Check answer The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses, and interest rates Click the icon to view the GDS Recovery Rates (PK). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Complete the blank cells in the table below. (Round to the nearest dollar.) EOY Taxable income, BTCF, $ Depreciation, $ $ Income Tax (24%), $ ATCF, $ 0 1 90,000 - 4,080 2 90,000 - 26,800 96,432 3 90,000 OUUOODI -4,781 O DOS OOOOOO 4 90,000 5 90.000 68.976 - 16,554 5 20,000 The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? Click the icon to view the additional data on the revenues, expenses and interest rates Click the icon to view the GDS Recovery Rates (K). More info Click the icon to view the interest and annuity table for discrete con Complete the blank cells in the table below. (Round to the nearest dolla Purchase price Delivery charge Installation cost Employee training $320,000 $6,000 $29,000 $10,000 Increased annual revenue Increased annual expenses After-tax MARR Effective tax rate Sales price of the tool in yr. 5 Projected salvage value in yr. 5 $120,000 $30,000 10% 24% $20,000 $10,000 Print Done ENGR 335 Engineering Economics Fall 2021 Jospeh Bohlen * 11/11/21 10:35 PM Question 4, Problem 7-3... HW Score: 36.25%, 36.25 of 100 points = Homework: Chapter 7 HW 2 Save More info The CFO of Acme Manufacturing is considering the purchas credit line with the local bank. The CFO has been directed e expenses, some of which was borrowed on a long-term Is this a good investment? Click the icon to view the additional data on the reveny Click the icon to view the GDS Recovery Rates (TK). Click the icon to view the interest and annuity table for Year 1 2 3 4 5 Complete the blank cells in the table below. (Round to the 6 7 GDS Recovery Rates (rk) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295 10 89 pmQBH66NB9% 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 0.0446 11 12 13 14 15 16 17 18 19 20 Print Done Etext pages Calculator Get more help Clear all Check answer = Homework: Chapter 7 HW 2 Question 4, Problem 7-3... Part 1 of 3 HW Score: 36.25%, 36.25 of 100 points O Points: 0 of 30 Save The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? 5 Click the icon to view the additional data on the revenues, expenses, and interest rates Click the icon to view the GDS Recovery Rates Click the icon to view the interest and annuity t More info Complete the blank cells in the table below. (Round N 1 2 3 Discrete Compounding; i = 10% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 1.7716 0.5645 7.7156 4.3553 0.1296 1.9487 0.5132 9.4872 4.8684 0.1054 2.1436 0.4665 11.4359 5.3349 0.0874 2.3579 0.4241 13.5795 5.7590 0.0736 2.5937 0.3855 15.9374 6.1446 0.0627 Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 0.2296 0.2054 0.1874 0.1736 0.1627 4 5 6 7 8 9 10 Print Done Etext pages Calculator Get moic met Clear all Check