An asset was acquired by Dave company with the following values: First cost= $100000, depreciable life=3 years, and an estimated salvage value of $20000. Initial investment is borrowed at 10% per year with repayment of an equal uniform amounts at the end of each year in 3 years. Expected gross income and expenses are $50000 and $10000 at year 1, respectively, and both increase by $2500 per year subsequently. The asset is actually salvaged after 3 years for $125000. A)What will be the size of each payment for the $100000 debt? How much of each payment interests and how much of each payment is principal (i.e., towards the $100000 debt)? b) Calculate depreciation using double-declining balance method (i.e., d=2/N) c) Fill in all the blank cells in the below table. Show all the calculations for all gray cells to receive full credit. Te=40% d) Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis no excel plezz
An asset was acquired by Dave company with the following values: First cost= $100000,
A)What will be the size of each payment for the $100000 debt? How much of each payment interests and how much of each payment is principal (i.e., towards the $100000 debt)?
b) Calculate depreciation using double-declining balance method (i.e., d=2/N)
c) Fill in all the blank cells in the below table. Show all the calculations for all gray cells to receive full credit. Te=40%
d) Assuming a MARR of 10%, determine if it is a good investment on an after-tax basis
no excel plezz
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