Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income taxes are 40 percent, and the after-tax MARR is 10 percent. Determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR, if the router is kept for 12 years.

Use MACRS-GDS and state the appropriate property class.

End of Year	ATCF
0	$enter a dollar amount rounded to the nearest dollar
1	$enter a dollar amount rounded to the nearest dollar
2	$enter a dollar amount rounded to the nearest dollar
3	$enter a dollar amount rounded to the nearest dollar
4	$enter a dollar amount rounded to the nearest dollar
5	$enter a dollar amount rounded to the nearest dollar
6	$enter a dollar amount rounded to the nearest dollar
7	$enter a dollar amount rounded to the nearest dollar
8	$enter a dollar amount rounded to the nearest dollar
9	$enter a dollar amount rounded to the nearest dollar
10	$enter a dollar amount rounded to the nearest dollar
11	$enter a dollar amount rounded to the nearest dollar
12	$enter a dollar amount rounded to the nearest dollar

After-tax PW= $enter a dollar amount rounded to the nearest dollar
After-tax AW= $enter a dollar amount rounded to the nearest dollar

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.

After-tax IRR= enter percentages rounded to 1 decimal place %
After-tax ERR= enter percentages rounded to 1 decimal place %

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.

Answer rating: 100% (QA)

MACRS GDS rate is depreciation rate used for US tax purposes It does not take into account s... View the full answer