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12. Please choose the correct answer and give the full clear solution! (No need for explanations!) Thank you!!

Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. Before-Tax Cash Flow Depreciation {xx.xx} ($) [xx.xx) ($) Taxable income (xx.xx) ($) Cash Flow for Income Taxes (xx.xx) ($) After-Tax Cash Flow {xx.xx] ($) 0 1 Select 2 3 [ Select] 4 5 6 [ Select ] 7 8 Select] 9 10 PW(O) using MARR Select) Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275.000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12% EOY Before-Tax Cash Flow Depreciation (xx.xx} ($) xx.xx} ($) Taxable income (xx.xx) ($) Cash Flow for Income Taxes [xx.xx} ($) After-Tax Cash Flow xx.xx} ($) 0 1 Select] 2 [ Select 67347.50 78595.00 39297.50 none of the choices 50000 3 Select] 4 5 6 [ Select] 7 8 [ Select] 9 10 PW(0) using MARR Select] Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) [xx.xx} ($) Taxable Income (xx.xx] ($) Cash Flow for Income Taxes {xx.xx) ($) After-Tax Cash Flow {xx.xx} ($) 1 [Select] 2 3 SIS TERIE 4 [ Select] I Select none of the choices -6096.65 6756.85 -74102 1902.50 5 Select] 6 7 Select] 8 9 10 PW(O) using MARR [ Select] Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275.000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40.000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) [xx.xx) ($) Taxable Income (xx.xx) ($) Cash Flow for Income Taxes {xx.xx) ($) After-Tax Cash Flow (xx.xx} ($) 0 1 [Select] 2 3 [Select] 4 5 6 [ Select] 7 I Select] 40079.43 40090.15 43903.35 none of the choices 35302.22 Sclect] 18 9 10 PWO) using MARR I Select] Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) xx.xx) ($) Taxable Income (xx.xx) ($) Cash Flow for Income Taxes {xx.xx] ($) After-Tax Cash Flow {xx.xx} ($) O 1 [ Select ] 2. 3 [ Select] 4 5 16 [ Select) 18 Select] 9 10 Select] 90000 25442.50 37735.00 none of the choices 50000 PW(0) using MARR Select ] Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275.000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12% EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) [xx.xx] ($) Taxable income (xx.xx] ($) Cash Flow for Income Taxes [xx.xx) ($) After-Tax Cash Flow xx.xx) ($) O 1 [ Select] 2 Select] 3 4 5 Select] 6. 7 [Sclect] 8 9 [Select] -21725.09 none of the choices 253274.91 295390.08 20390.08 10 Select] PW(0) using MARR ) Question 12 10 pts Certain new machinery used in manufacturing of motor vehicles, when placed in service, is estimated to cost $275,000. It is expected to reduce net annual operating expenses by $50,000 per year for 10 years and to have a $40,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate of 7.5%. State income taxes are deductible from federal taxable income. This machinery is to be depreciated using the MACRS (GDS). Develop the BTCFs and ATCFs and compute for the respective PWs at EOY O using an MARR of 12%. EOY Before-Tax Cash Flow Depreciation {xx.xx} ($) [xx.xx} ($) Taxable income (xx.xx) ($) Cash Flow for Income Taxes {xx.xx}($) After-Tax Cash Flow {xx.xx} ($) 0 1 [Select] 2 3 [ Select] 4 5 16 [Select] 7 8 Select] 9 10 PWO) using MARR [Select]