You pay $18,000 for new equipment plus you pay $2,000 to install it, which is added to the cost basis. Each year for five years, you earned $5,000 from the use of this equipment from which you then needed to subtract $1,000 in expenses. (a) Using straight-line depreciation over a 5-year lifetime (with a half-year adjustment in years 1 and 6) and a tax rate of 28%, what was your after-tax cash flow (ATCF) from this investment in year 3? (b) Using the GDS depreciation schedule for a 5-year recovery period, what was your ATCF in year 3? GDS depreciation schedule for a 5-year recovery period year = 12345 6 factor = 0.20 0.32 0.192 0.1152 0.1152 0.0576 (c) What is the present worth at time 0 of this investment using a MARR of 8%?

You pay $18,000 for new equipment plus you pay $2,000 to install it, which is added to the cost basis. Each year for five years, you earned $5,000 from the use of this equipment from which you then needed to subtract $1,000 in expenses. (a) Using straight-line depreciation over a 5-year lifetime (with a half-year adjustment in years 1 and 6) and a tax rate of 28%, what was your after-tax cash flow (ATCF) from this investment in year 3? (b) Using the GDS depreciation schedule for a 5-year recovery period, what was your ATCF in year 3? GDS depreciation schedule for a 5-year recovery period year = 12345 6 factor = 0.20 0.32 0.192 0.1152 0.1152 0.0576 (c) What is the present worth at time 0 of this investment using a MARR of 8%?

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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