A certain engine lathe can be purchased for $150,000 and depreciated over three years to a zero salvage value with the SL method. This machine will produce metal parts that will generate revenues of $80,000 (time zero dollars) per year. It is a policy of the company that the annual revenues will be increased each year to keep pace with the general inflation rate, which is expected to average 5% per year . Labor, materials, and utilities totalling $20,000 ( time 0 dollars) per year are all expected to increase at 9 % per year. The firms effective income tax rate is 50%, and its after-tax MARR (ic) is 25 % per year.

Perform an actual dollar (A$) analysis and determine the annual ATCFs of the preceding investment What is the actual-dollar after-tax equivalent annual cost for this investment? What is the ATCF per year in real for this investment? What is the real-dollar after tax annual worth for this investment? What is the actual dollar after-tax present worth for this investment