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you have to make a table with.. BTCF (Before tax cashflow), Depreciation, Tax income, Tax at rate, ATCF(After Tax Cashflow). then finally solve for PW

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you have to make a table with.. BTCF (Before tax cashflow), Depreciation, Tax income, Tax at rate, ATCF(After Tax Cashflow). then finally solve for PW

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A proposed project will provide the capability to produce a specialized product estimated to have a short market (sales) life. Based on an after-tax analysis using the PW method, what minimum amount of equivalent uniform annual revenue is required to justify the project economically? Capital investment is $1,040,000. (This includes land and working capital.) The cost of depreciable property, which is part of the $1,040,000 total estimated project cost, is $370,000. Assume, for simplicity, that the depreciable property is in the MACRS (GDS) three-year property class. The analysis period is three years. Annual operating and maintenance expenses are $604,000 in the first year, and they increase at the rate of 5% per year (i.e., f = 5%) thereafter. Estimated MV of depreciable property from the project at the end of three years is $340,000 Federal income tax rate = 23%, state income tax rate = 4%. MARR (after taxes) is 12% per year. Use the half-year time convention for depreciation in the last year. GDS Recovery Rates (rk) Year 3-year Property Class 0.3333 0.4445 0.1481 0.0741

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