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use the chart for the problem please An investment of $1,000,000 generates annual net incomes of $400,000 and salvage value of $300,000 after 4 years.

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An investment of $1,000,000 generates annual net incomes of $400,000 and salvage value of $300,000 after 4 years. At MARR=10% and an effective tax rate of 30% use MACRS with the depreciation life of 3 years to determine after tax PW. Repeat problem 1 when 50% of the investment is borrowed at an annual interest rate of 10% to be paid back in three equal installments. TABLE 12.8 PURCHASE OF AN ASSET WITH RETAINED EARNINGS Taxes End of Year Before-Tax Cash Flow Depreciation Charges Taxable Income B + C (Savings) -0.5 XD After-Tax Cash Flow B + E D TABLE 12.10 PURCHASE OF AN ASSET WITH A COMPOUND-INTEREST LOAN AT 12% Loan Cash Flow End of Year Before-Tax Cash Flow Taxable Income B + D + E Depreciation Charges Taxes (Savings) -0.5 XF After-Tax Cash Flow B+C + D + G Principal C Interest D E An investment of $1,000,000 generates annual net incomes of $400,000 and salvage value of $300,000 after 4 years. At MARR=10% and an effective tax rate of 30% use MACRS with the depreciation life of 3 years to determine after tax PW. Repeat problem 1 when 50% of the investment is borrowed at an annual interest rate of 10% to be paid back in three equal installments. TABLE 12.8 PURCHASE OF AN ASSET WITH RETAINED EARNINGS Taxes End of Year Before-Tax Cash Flow Depreciation Charges Taxable Income B + C (Savings) -0.5 XD After-Tax Cash Flow B + E D TABLE 12.10 PURCHASE OF AN ASSET WITH A COMPOUND-INTEREST LOAN AT 12% Loan Cash Flow End of Year Before-Tax Cash Flow Taxable Income B + D + E Depreciation Charges Taxes (Savings) -0.5 XF After-Tax Cash Flow B+C + D + G Principal C Interest D E

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