3) Below table shows the calculations for an after-tax analysis of a machine purchase alternative. Depreciation Income Тахes EOY ВТСР Тахable АТCF Deduction Income 20,000 16,000 16,000 16,000 - 20,000...


3)<br>Below table shows the calculations for an after-tax analysis of a machine purchase alternative.<br>Depreciation<br>Income<br>Тахes<br>EOY<br>ВТСР<br>Тахable<br>АТCF<br>Deduction<br>Income<br>20,000<br>16,000<br>16,000<br>16,000<br>- 20,000<br>9,500<br>9,500<br>9,500<br>- 6,500<br>- 6,500<br>- 6,500<br>- 6,500<br>– 6,500<br>-7,500<br>1<br>3,000<br>3,000<br>3,000<br>13,000<br>13,000<br>13,000<br>13,000<br>2<br>16,000<br>16,000<br>9,500<br>9,500<br>4<br>3,000<br>3,000<br>5<br>13,000<br>6<br>18,000<br>3,000<br>15,000<br>10,500<br>a) Find answers to the below questions<br>i.<br>What are the cost basis (price) and

Extracted text: 3) Below table shows the calculations for an after-tax analysis of a machine purchase alternative. Depreciation Income Тахes EOY ВТСР Тахable АТCF Deduction Income 20,000 16,000 16,000 16,000 - 20,000 9,500 9,500 9,500 - 6,500 - 6,500 - 6,500 - 6,500 – 6,500 -7,500 1 3,000 3,000 3,000 13,000 13,000 13,000 13,000 2 16,000 16,000 9,500 9,500 4 3,000 3,000 5 13,000 6 18,000 3,000 15,000 10,500 a) Find answers to the below questions i. What are the cost basis (price) and "annual revenues less expenses"? What is the terminal market value (or salvage value)? What is the income tax rate? ii. iii. iv. What is the method used for depreciation deduction? What is the book value at the end of useful life? V. b) Calculate the equivalent present worth (PW) and the equivalent annual worth (AW) at an after-tax MARR of 9%.

Jun 11, 2022
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