Rr.5. Use straight-line depreciation (no half-year convention).End of YearATCF01234$After-tax IRR:LAAfter-tax ERR:EALAAfter-tax PW: $After-tax AW: $LA8000019500177271611514650For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is+10.17349.411.79 %11.34 %For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2. A tractor for over-the-road hauling is to be purchased by AgriGrow for $80,000. It is expected to be of use to the company for 6 years,after which it will be salvaged for $3,800. Transportation cost savings are expected to be $140,000 per year; however, the cost ofdrivers is expected to be $53,000 per year, and operating expenses are expected to be $47.000 per year, including fuel, maintenance,insurance, and the like. The company's marginal tax rate is 25 percent, and MARR is 10 percent on after-tax cash flows. Suppose that,to AgriGrow's surprise, they actually dispose of the tractor at the end of the fourth tax year for $5,800. Develop tables using aspreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR after only 4 years.Click here to access the TVM Factor Table CalculatorPart aYour answer is incorrect.

Depreciation refers to the decrease in the value of an asset over time due to wear and tear,…

Use straight-line depreciation (no half-year convention). End of Year ATCF 0 1 2 3 4 $ After-tax IRR: $ After-tax ERR: $ $ After-tax PW: $ After-tax AW: $ $ 80000 19500 17727 16115 14650 For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. 17349.4 11.79 % 11.34 % For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

Use straight-line depreciation (no half-year convention). End of Year ATCF 0 1 2 3 4 $ After-tax IRR: $ After-tax ERR: $ $ After-tax PW: $ After-tax AW: $ $ 80000 19500 17727 16115 14650 For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±10. 17349.4 11.79 % 11.34 % For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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