Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $196,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $60,000. If the projected operating expense for the equipment is $61,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 23%, and the after-tax MARR is 10% per year. Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. IIIII The after-tax equivalent uniform annual cost is $ (Round to the nearest dollar.) GDS Recovery Rates (rk) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 WN - Discrete Compounding; i = 10% 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 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 N Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 1 2 3 Your company has just signed a three-year nonrenewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment costs $196,000 and qualifies for five-year MACRS depreciation. At the end of the three-year contract, you expect to be able to sell the equipment for $60,000. If the projected operating expense for the equipment is $61,000 per year, what is the after-tax equivalent uniform annual cost (EUAC) of owning and operating this equipment? The effective income tax rate is 23%, and the after-tax MARR is 10% per year. Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 10% per year. IIIII The after-tax equivalent uniform annual cost is $ (Round to the nearest dollar.) GDS Recovery Rates (rk) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 WN - Discrete Compounding; i = 10% 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 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 N Capital Recovery Factor To Find A Given P AIP 1.1000 0.5762 0.4021 0.3155 0.2638 1 2 3
