Question: Need some help with this question, thank you 1. (20 points) Assume you are now working in industry at Tesla. The corporation is consid- ering

 Need some help with this question, thank you 1. (20 points)

Need some help with this question, thank you

Assume you are now working in industry at Tesla. The corporation is

1. (20 points) Assume you are now working in industry at Tesla. The corporation is consid- ering purchasing a new cloud computing system which has a 5-year useful life. They are planning on using the device for 7 years. The system costs 3594900 and it can be sold at the end of year 7 for 58.000. The corporate finance team estimates that the yearly benet attributable to this system is $15,000. The company prefers to use MACRS for depreciation. they are subject to a 34% tax rate. and they use an MARR of 12%. (a) (2 points) Draw a cash flow diagram for the before tax cash flow for the 7-year term of this purchase: (b) (10 points) Using the information above. fill in the following table: Year Before Tax Cash Flow l Depreciation Taxable Income After Tax Cash Flow NGU'DWNHO (c) (3 points) Given your answer for part b, what is the W5 W9 jut-trawl M 015 mw'n (d) (5 points) Given your answer for part c. should you invest in this new system? Why or why not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!