Effective income tax rate After-tax MARR EOY BTCF $ 50% 12% Taxable Income 'Income Taxes Depreciation, ATCF (95,000.00) $ (95,000.00) $ $ $ 137,000.00 23,750.00 13,250.00 -$6,625.00, 30,375.00 $ -$6,625.00, $ $ 237,000.00 23,750.00 $ $ 30,375.00 13,250.00 $ $ $ 337,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 $ $ $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "O")? A/
Effective income tax rate After-tax MARR EOY BTCF $ 50% 12% Taxable Income 'Income Taxes Depreciation, ATCF (95,000.00) $ (95,000.00) $ $ $ 137,000.00 23,750.00 13,250.00 -$6,625.00, 30,375.00 $ -$6,625.00, $ $ 237,000.00 23,750.00 $ $ 30,375.00 13,250.00 $ $ $ 337,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 $ $ $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "O")? A/
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Domestic
Don't upload image please
![Effective income tax rate
After-tax MARR
EOY BTCF
50%
12%
Taxable Income
Income Taxes
Depreciation,
ATCF
$
(95,000.00)
$
30,375.00
$
30,375.00
$
30,375.00
$
30,375.00
$
(95,000.00)
$
$
$
13,250.00
-$6,625.00,
37,000.00 23,750.00
$
$
$
237,000.00 23,750.00 13,250.00 -$6,625.00,
$
$
$
337,000.00 23,750.00 13,250.00 -$6,625.00,
$
$
$
437,000.00 23,750.00 13,250.00 -$6,625.00
For the given table, find the EVA in year 3 (please round the result to integer, e.g., if
the result is $5,732.07, fill in 5732);
Should this project be invested based on the annual/present/future equivalent EVA
(fill in "1" if the answer is "yes", otherwise fill in "0")?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc9567e47-8994-4706-8c0c-ed9977a82385%2F447c63f7-cf9a-4532-9ca1-3190aedbd19d%2Ft18nd9r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Effective income tax rate
After-tax MARR
EOY BTCF
50%
12%
Taxable Income
Income Taxes
Depreciation,
ATCF
$
(95,000.00)
$
30,375.00
$
30,375.00
$
30,375.00
$
30,375.00
$
(95,000.00)
$
$
$
13,250.00
-$6,625.00,
37,000.00 23,750.00
$
$
$
237,000.00 23,750.00 13,250.00 -$6,625.00,
$
$
$
337,000.00 23,750.00 13,250.00 -$6,625.00,
$
$
$
437,000.00 23,750.00 13,250.00 -$6,625.00
For the given table, find the EVA in year 3 (please round the result to integer, e.g., if
the result is $5,732.07, fill in 5732);
Should this project be invested based on the annual/present/future equivalent EVA
(fill in "1" if the answer is "yes", otherwise fill in "0")?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education