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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

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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 S204,000 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 $77,000. If the projected operating expense for the equipment is $68,000 per year, what is the after-tax equivalent uniform annual cost EUAC of owning and operating this equipment? The effective income tax rate is 40%, and the after-tax MARR is 11% per year. Click the icon to view the GDS Recovery Rates (A) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 1 1% per year. The after-tax equivalent uniform annual cost is $(Round to the nearest dollar.) More Info 1More Info Discrete Compounding; 11% Single Payment Uniform Series GDS Recovery Rates () Sinking FundRecovery Factor Capital Compound Amount Factor To Find F Given A FA 1.0000 2.1100 3.3421 4.7097 6.2278 Compound 5-year Property Class 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 Present Worth Factor To Find P Given F PIF 0.9009 0.8116 0.7312 0.6587 0.5935 Present Worth Factor To Find P Given A PIA 0.9009 1.7125 2.4437 3.1024 3.6959 Year Factor To FindF Given P FIP 1.1100 1.2321 1.3676 1.5181 1.6851 Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0.2706 To Find A 2 Given F AIF 1.0000 0.4739 0.2992 0.2123 0.1606 PrintDone Print Done Enter your answer in the answer box. 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 S204,000 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 $77,000. If the projected operating expense for the equipment is $68,000 per year, what is the after-tax equivalent uniform annual cost EUAC of owning and operating this equipment? The effective income tax rate is 40%, and the after-tax MARR is 11% per year. Click the icon to view the GDS Recovery Rates (A) for the 5-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 1 1% per year. The after-tax equivalent uniform annual cost is $(Round to the nearest dollar.) More Info 1More Info Discrete Compounding; 11% Single Payment Uniform Series GDS Recovery Rates () Sinking FundRecovery Factor Capital Compound Amount Factor To Find F Given A FA 1.0000 2.1100 3.3421 4.7097 6.2278 Compound 5-year Property Class 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 Present Worth Factor To Find P Given F PIF 0.9009 0.8116 0.7312 0.6587 0.5935 Present Worth Factor To Find P Given A PIA 0.9009 1.7125 2.4437 3.1024 3.6959 Year Factor To FindF Given P FIP 1.1100 1.2321 1.3676 1.5181 1.6851 Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0.2706 To Find A 2 Given F AIF 1.0000 0.4739 0.2992 0.2123 0.1606 PrintDone Print Done Enter your answer in the answer box

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