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The Freescale Semiconductor Company has decided to purchase a new Digital Multimeter for RM135,000. The new device will be in use for 10 years before

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The Freescale Semiconductor Company has decided to purchase a new Digital Multimeter for RM135,000. The new device will be in use for 10 years before being sold and negligible market value (asset class 36.0). The purchase of the new devices will increase the companies' revenue by RM 30.000 annually. whereas the associated operating expenses are expected to be RM5,000 annually. Refer to Appendix for MACRS Class Lives and Recovery Periods and the GDS recovery rates, respectively. A) Generate the General Depreciation System (GDS) depreciation deductions, taxable income, cash flow for income taxes and after-tax cash flow for this system, if an effective income tax rate of 45% is used by the company Compute after-tax PW if the after-tax MARR equals 0.75% per year. Justify whether the investment is profitable, B) The Freescale Semiconductor Company has decided to purchase a new Digital Multimeter for RM135,000. The new device will be in use for 10 years before being sold and negligible market value (asset class 36.0). The purchase of the new devices will increase the companies' revenue by RM 30.000 annually. whereas the associated operating expenses are expected to be RM5,000 annually. Refer to Appendix for MACRS Class Lives and Recovery Periods and the GDS recovery rates, respectively. A) Generate the General Depreciation System (GDS) depreciation deductions, taxable income, cash flow for income taxes and after-tax cash flow for this system, if an effective income tax rate of 45% is used by the company Compute after-tax PW if the after-tax MARR equals 0.75% per year. Justify whether the investment is profitable, B)

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