Chevron Chemical Company in Texas, acquired new equipment for its polyethylene processing line. The equipment has a fırst cost of $400,000, a life of only 3 years, and a salvage value of 10% of its...

Chevron Chemical Company in Texas, acquired new equipment for its polyethylene processing line. The equipment has a fırst cost of<br>$400,000, a life of only 3 years, and a salvage value of 10% of its first cost.<br>a. Complete the following After-Tax CF Table for the above equipment investment. Effective T is 0.35 (put numbers only without $ sign)<br>Year<br>NOI<br>Pand S<br>CFBT<br>TI<br>Taxes (35%)<br>CFAT<br>-400,000<br>-400,000<br>-400,000<br>1<br>210,000<br>210,000<br>133,320<br>76,680<br>26,838<br>2<br>210,000<br>210,000<br>177,800<br>32,200<br>198,730<br>3<br>210,000<br>40,000<br>59,240<br>52,766<br>197,234<br>b. Put the formula (equation) for calculating the PW of the CFAT at MARR = 10% substituting all variables (use factor notation)<br>PW = -400000<br>+||<br>+<br>+<br>

Extracted text: Chevron Chemical Company in Texas, acquired new equipment for its polyethylene processing line. The equipment has a fırst cost of $400,000, a life of only 3 years, and a salvage value of 10% of its first cost. a. Complete the following After-Tax CF Table for the above equipment investment. Effective T is 0.35 (put numbers only without $ sign) Year NOI Pand S CFBT TI Taxes (35%) CFAT -400,000 -400,000 -400,000 1 210,000 210,000 133,320 76,680 26,838 2 210,000 210,000 177,800 32,200 198,730 3 210,000 40,000 59,240 52,766 197,234 b. Put the formula (equation) for calculating the PW of the CFAT at MARR = 10% substituting all variables (use factor notation) PW = -400000 +|| + +

Jun 11, 2022

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Chevron Chemical Company in Texas, acquired new equipment for its polyethylene processing line. The equipment has a fırst cost of $400,000, a life of only 3 years, and a salvage value of 10% of its...

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