Two different copying machines are being considered in your company. The Mortar copier would be purchased while the Xrocks copier would be leased. The company will replace any copier selected at this time after three years (i.e., the planning horizon for this evaluation is three years). The MACRS depreciation recovery period for office equipment is seven years. Assume an income tax rate of 30% and an after-tax MARR of 11% per year. Using the data below, which machine would you recommend? Click the icon to view the additional data. Click the icon to view the GDS Recovery Rates (rk). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. The PW value for the Mortar is $ (Round to the nearest dollar.) M More info M ir e Mortar Xrocks Initial Investment Annual lease payment Annual operating expenses Market value after 3 years $16,000 n/a $850 $8,500 n/a $8,500 $1,600 n/a Print Done - More info Year 1 2 3 4 5 6 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 7 8 9 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 00446 10 11 12 13 14 15 16 17 18 Print Done Calculato cerlorente A UICal al - More info N 1 2 3 4 5 Discrete Compounding; i = 11% 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 1.1100 0.9009 1.0000 0.9009 1.0000 1.2321 0.8116 2.1100 1.7125 0.4739 1.3676 0.7312 3.3421 2.4437 0.2992 1.5181 0.6587 4.7097 3.1024 0.2123 1.6851 0.5935 6.2278 3.6959 0.1606 1.8704 0.5346 7.9129 4.2305 0.1264 2.0762 0.4817 9.7833 4.7122 0.1022 2.3045 0.4339 11.8594 5.1461 0.0843 2.5580 0.3909 14.1640 5.5370 0.0706 2.8394 0.3522 16.7220 5.8892 0.0598 Capital Recovery Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0.2706 0.2364 0.2122 0.1943 0.1806 0.1698 6 7 8 9 10 Print Done Two different copying machines are being considered in your company. The Mortar copier would be purchased while the Xrocks copier would be leased. The company will replace any copier selected at this time after three years (i.e., the planning horizon for this evaluation is three years). The MACRS depreciation recovery period for office equipment is seven years. Assume an income tax rate of 30% and an after-tax MARR of 11% per year. Using the data below, which machine would you recommend? Click the icon to view the additional data. Click the icon to view the GDS Recovery Rates (rk). Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11% per year. The PW value for the Mortar is $ (Round to the nearest dollar.) M More info M ir e Mortar Xrocks Initial Investment Annual lease payment Annual operating expenses Market value after 3 years $16,000 n/a $850 $8,500 n/a $8,500 $1,600 n/a Print Done - More info Year 1 2 3 4 5 6 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 7 8 9 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 00446 10 11 12 13 14 15 16 17 18 Print Done Calculato cerlorente A UICal al - More info N 1 2 3 4 5 Discrete Compounding; i = 11% 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 1.1100 0.9009 1.0000 0.9009 1.0000 1.2321 0.8116 2.1100 1.7125 0.4739 1.3676 0.7312 3.3421 2.4437 0.2992 1.5181 0.6587 4.7097 3.1024 0.2123 1.6851 0.5935 6.2278 3.6959 0.1606 1.8704 0.5346 7.9129 4.2305 0.1264 2.0762 0.4817 9.7833 4.7122 0.1022 2.3045 0.4339 11.8594 5.1461 0.0843 2.5580 0.3909 14.1640 5.5370 0.0706 2.8394 0.3522 16.7220 5.8892 0.0598 Capital Recovery Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0.2706 0.2364 0.2122 0.1943 0.1806 0.1698 6 7 8 9 10 Print Done