An industrial equipment is purchased for $300,000. It is expected to work for 12 years before it is sold for $50,000. Moreover, the annual cost of maintaining this equipment is estimated to be...

Solve question 3

Extracted text: An industrial equipment is purchased for $300,000. It is expected to work for 12 years before it is sold for $50,000. Moreover, the annual cost of maintaining this equipment is estimated to be $20,000. Given those information and MARR-10%, answer Questions 1-4 below: For all questions, you are required to show all calculations. 1) Use the switchover technique of 150% DB to depreciate this equipment during its service life 2) Use the Corporate Federal Tax (2006) to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of S150,000 3) Use 25% income tax rate to construct the AFTCF given the calculations obtained in Question 1 and annual revenue of $150,000