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#2 only and pr

#2 only and pr

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please complete #2 only and provide work in excel and show all formulas used in excel thank you!   

Initial Cost of $55,000, annual O&M costs of $800 increasing by $100 annually, salvage value of $6,000 at the end of it's 10 year useful life. Sheet 1 - Depreciation Calculate the depreciation for each year and book value using the appropriate MACRS recovery period for your vehicle. Sheet 2 - Taxes For your vehicle, now include annual labor cost of $95,000 and annual revenue of $117,000. Using the appropriate MACRS determine the BTCF and ATCF at a 21% federal tax rate. Should your vehicle be purchased? (Use an After-Tax MARR of 8% for PW, AW and ROR analysis)
Transcribed Image Text:Initial Cost of $55,000, annual O&M costs of $800 increasing by $100 annually, salvage value of $6,000 at the end of it's 10 year useful life. Sheet 1 - Depreciation Calculate the depreciation for each year and book value using the appropriate MACRS recovery period for your vehicle. Sheet 2 - Taxes For your vehicle, now include annual labor cost of $95,000 and annual revenue of $117,000. Using the appropriate MACRS determine the BTCF and ATCF at a 21% federal tax rate. Should your vehicle be purchased? (Use an After-Tax MARR of 8% for PW, AW and ROR analysis)
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