The market value of a presently owned machine lin a wind turbine manufacturing plant is $130,000. It has annual operating costs of $63,000 with no salvage value after its remaining life of 3 years. The depreciation for the next 3 years will be $69,960, $49,960, and $35,720. Assume the effective tax rate is 24% and its after-tax MARR Is 12%. A PW relation for comparing the defender agalnst a challenger that also has a 3-year life is belng developed. Determine the after-tax cash flow value for year 2 only used in the PW relation. The after-tax cash flow value for year 2 only used in the PW relation is $-

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The market value of a presently owned machine in a wind turbine manufacturing plant is $130,000. It has annual operating costs of
$63,000 with no salvage value after its remaining life of 3 years. The depreciation for the next 3 years will be $69,960, $49,960, and
$35,720. Assume the effective tax rate is 24% and its after-tax MARR Is 12%. A PW relation for comparing the defender agalnst a
challenger that also has a 3-year life is belng developed. Determine the after-tax cash flow value for year 2 only used in the PW
relation.
The after-tax cash flow value for year 2 only used in the PW relation is $-
Transcribed Image Text:The market value of a presently owned machine in a wind turbine manufacturing plant is $130,000. It has annual operating costs of $63,000 with no salvage value after its remaining life of 3 years. The depreciation for the next 3 years will be $69,960, $49,960, and $35,720. Assume the effective tax rate is 24% and its after-tax MARR Is 12%. A PW relation for comparing the defender agalnst a challenger that also has a 3-year life is belng developed. Determine the after-tax cash flow value for year 2 only used in the PW relation. The after-tax cash flow value for year 2 only used in the PW relation is $-
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