Not use ai please Capital Gains Tax ProblemThe International Parcel Service has installed a new radio frequency identification system tohelp reduce the number of packages that are incorrectly delivered. The capital investmentin the system is $65,000, and the projected annual savings are tabled below. The system'ssalvage value at the end of year 5 is $15,000, and the MARR before tax is 18% per year.End of Year1Savings$25,000230,000330,000440,000546,000The company is using double declining balance as its depreciation method. The income taxrate is 20% and capital gains tax is 6%.a. If the system was sold for $10,000 at the end of year 5, construct the ATCF table, anddetermine the course of action by the management using PW method.b. If the system was sold for $25,000 at the end of year 5, construct the ATCF table, anddetermine the course of action by the management using PW method.

1. Depreciation Calculation: To calculate the annual depreciation, I employed the double-declining…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Engineering economy - ENGR 3322 The International Parcel Service has installed a new radio frequency identification system to help reduce the number of packages that are incorrectly delivered. The capital investment in the system is $65,000, and the projected annual savings are tabled below. The system’s market value at the EOY five is negligible, and the MARR is 18% per year. Calculate the present worth of the project. a. $ 35,730 b. $ 36,730 c. $ 37,730 d. None of the choices
a project’s initial cost of $220,000 is borrowed from a bank. The following net cashflow is expected in the first 5 years End of Year Net Cashflow $21,000 $42,000 -$11,500 $33,000 $17,500 The company’s MARR is 12%. Calculate in table the loan balance and project balance of each year? also find out the NFW and NPW of the project?
A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans- mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 10 % per year for borrowing rate for extra funds, determine: given MARR = 12% Year Net cash flow 0. -50000 1 +22000 +38000 3. -2000 4 -1000 +5000 a) How many number of ROR values is expected and why? b) Calculate the external rate of return (MIRR). c) Is the project economically viable?
Contributions of $800 at the beginning of every three months resulted in an RRSP worth $85.000 after 10 years. What effective rate of Interest did the RRSP earn Mample Choice 01:50:04 17.878% 18.3139 16.791% 17175% 1983%
Engineering Econ HW4 Q3
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A company is analyzing a 15-year project which requires an initial investment of $300 million.From the 1st year to the 10th year, this project requires an annual expense at the end of each year.The 1st-year expense will be $10 million, and the expense will decrease by 5% each year. From the6th year to the 15th year, the project will generate an arithmetically increasing annual revenue at theend of each year: $10 million at the end of the 6th year, $20 million at the end of the 7th year, . . .,and $100 million at the end of the last year. Assume that the annual interest rate is 3% compoundedannually a) Draw a cash-flow diagram for this project from the company’s perspective. b) Find the present value of this project c) The company considers a 10-year project which requires an initial investment of $200million, no other expenses, and a consistent annual revenue at the end of each year from the 1styear to the last year. If this project has the same value with the above project, what will…
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ou've estimated the following cash flows (in $) for a project: Year Cash flow 0 -5,400 1 1,125 2 1,848 3 2,540 The required return for the project is the company's cost of capital of 8%. What is the MIRR for the project (using the reinvestment approach)?
MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis. How do you find FW? Please show all steps and formulas used in excel format. Thank you!
MARR 20% EOY Cash Flow 0 $(70,000.00) 1 $ 20,000.00 2 $ 19,000.00 3 $ 18,000.00 4 $ 17,000.00 5 $ 16,000.00 6 $ 15,000.00 7 $ 14,000.00 8 $ 13,000.00 9 $ 12,000.00 10 $ 11,000.00 11 $ 10,000.00 12 $ 9,000.00 13 $ 8,000.00 14 $ 7,000.00 15 $ 6,000.00 16 $ 5,000.00 17 $ 4,000.00 18 $ 3,000.00 19 $ 2,000.00 20 $ 1,000.00 Plot a graph of FW versus MARR, where MARR varies from 0 percent to 50 percent by 1 percent increments.FW should be on the y-axis and MARR on the x-axis.

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