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?

EOY	BTCF, $	Depreciation, $		Taxable Income, $		Income Tax (24%), $		ATCF, $
0	enter your response here							enter your response here
1	90,000	enter your response here		enter your response here		4,080		enter your response here
2	90,000	enter your response here		26,800		enter your response here		96,432
3	90,000	enter your response here		enter your response here		4,781		enter your response here
4	90,000	enter your response here		enter your response here		enter your response here		enter your response here
5	90,000	enter your response here		68,976		16,554		enter your response here
5	20,000	0		enter your response here		enter your response here		enter your response here

The CFO of Acme Manufacturing is considering the purchase of a special diamond tipped cuting tool This tool has the following into cost to put into service Acme will use cash to pay for all of these expenses some of which was bomowed 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 GOS recovery period of years. Assume the tool is sold in the fifth year for 520.000. Is this a good investment? Click the icon to view the additional data on the reves, expenses and interest rates Click the icon to view the GOS Recovery Rates ) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Complete the black coile in the table below. Round to the nearest dolar) BTCFS Depreciation, Taxable income Income Tax ATCES 0 1 90.000 -4,080 2 90.000 - 26,800 96.432 3 90.000 -4781 4 90 000 5 50.000 68 976 - 16,554 5 20 000 O 0 The CFO of Acme Manufacturing is considering the purchase of a special diamond tipped cuting tool This tool has the following into cost to put into service Acme will use cash to pay for all of these expenses some of which was bomowed 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 GOS recovery period of years. Assume the tool is sold in the fifth year for 520.000. Is this a good investment? Click the icon to view the additional data on the reves, expenses and interest rates Click the icon to view the GOS Recovery Rates ) Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. Complete the black coile in the table below. Round to the nearest dolar) BTCFS Depreciation, Taxable income Income Tax ATCES 0 1 90.000 -4,080 2 90.000 - 26,800 96.432 3 90.000 -4781 4 90 000 5 50.000 68 976 - 16,554 5 20 000 O 0