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um A company purchases an asset that costs $49,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of

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um A company purchases an asset that costs $49,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 31% income tax rate. (Use Table 1. Table 2 and Exhibit 12.4.) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 31%, is $13,088. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $15,190? Use the Goal Seek function of Excel. Answer is not complete. Complete this question by entering your answers in the tabs below. Required: Required 2 Demonstrate that the PV of the depreciation deductions, when the income tax rate is 31%, Is $13,088. (Do not round Intermediate calculations. Round "PV factor" to 3 decimal places and other answers to 2 decimal places) Year Depreciation PV MACRS % Present Deduction Savings Factor Values 1 33.33 % $ 16,331,70 $ 5,062.83 0.926 $ 4,688.18 2 44.45% 21,780.50 6,751.96 0,857 5.786.43 3 14,81% 7,256,90 2,249.64 0.794 1786.21 7.41% 3,630.90 1,125.58 0.735 827.30 % $ 13.088.12 4 1 A company purchases an asset that costs $49,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 8% and faces a 31% income tax rate. (Use Table 1. Table 2 and Exhibit 12.4) 1. Demonstrate that the PV of the depreciation deductions, when the income tax rate is 31%, is $13,088. 2. Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $15,190? Use the Goal Seek function of Excel. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Given an after-tax discount rate of 8%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $15,190? Use the Goal Seek function of Excel. (Round your answer to 2 decimal places.) Marginal income tax rate

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