A current asset (defender) is being evaluated for potential replacement. It was purchased four years ago at a cost of $62,000. It has been depreciated as a MACRS (GDS) five-year property-class asset. The present MV of the defender is $12000. Its remaining useful life is estimated to be four years, but it will require additional repair work now (a one-time $4000 expense) to provide continuing service equivalent to the challenger. The current effective income tax rate is 39%, and the after-tax MARR = 15% per year. Based on an outsider viewpoint, what is the after-tax initial investment in the defender if it is kept (not replaced now)?

How much would MARR change when the Min EUCA changes from year 3 to 2? Please do it in excel. =PMT($B$1,A5,-($B$4-B5))+B5*$B$1) =D5/(1+$B$1)^A5 =D5/(1+$B$1)^A5 =IF(G5=MIN($G$5:$G$9),"