1-

A high precision programmable router for shaping furniture components is purchased by Henredon for $115000. It is expected to last 12 years and have a salvage value of $5,000. It is considered a MACRS 7 year property. It will produce $45,000 in net revenue each year during its life. Corporate income taxes are 40% and the after-tax MARR is 10%.

What is the depreciation for year 2?

2-

A high precision programmable router for shaping furniture components is purchased by Henredon for $125000. It is expected to last 12 years and have a salvage value of $10000. It is considered a MACRS 7 year property. It will produce $56000 in net revenue each year during its life. Corporate income taxes are (a) and the after-tax MARR is (i)%.

What is the BTCF for year 12?

3-

A high precision programmable router for shaping furniture components is purchased by Henredon for $225000. It is expected to last 12 years and have a salvage value of $11000. It is considered a MACRS 7 year property. It will produce $27000 in net revenue each year during its life. Corporate income taxes are 0.38 and the after-tax MARR is 0.17%.

What is the Taxable Income for year 1?

4-

A high precision programmable router for shaping furniture components is purchased by Henredon for $155000. It is expected to last 12 years and have a salvage value of $3000. It is considered a MACRS 7 year property. It will produce $41000 in net revenue each year during its life. Corporate income taxes are 0.34 and the after-tax MARR is 0.10%.

What is the ATCF for year 2?