Certain new machinery, when place in service, is estimated to cost $180,000. It is expected to have a net annual operat
Posted: Fri Jul 01, 2022 7:36 am
Certain new machinery, when place in service, is estimated tocost $180,000. It is expected to have a net annual operatingexpenses of $36,000 and to have a $30,000 market value at theend of the 10th year. Use a straight-line depreciation. Assume thatthe firm income tax rate is 6%. Before-tax MARR of 15% per year andafter-tax MARR of 10% per year.(a)Develop the before-tax cash flow (CFBT) and after-tax cash flow(CFAT)(b)Calculate the before-tax PW and after-tax PW