Question: Please help 1 7) (35 points) A company is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the

Please help

Please help 1 7) (35 points) A company is considering the purchase

1 7) (35 points) A company is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply: Purchase price = $900, 000 {$500, 000 from own funds (equity) and $400, 000 from a loan} Equipment Life: 4 years Depreciation. MACRS- GDS 3-year propexty Estimated salvage: $180,000 Effective tax rate: 35% Expected 0&M Costs Estimated Revenue 1 $60,000 $360,000 2 $80,000 $400,000 3 $100,000 $440,000 4 $120 000 $480, 000 Conditions on loan: $400, 000 borrowed at a nominal rate of 6% per year compounded annually. The loan Is to be repaid over 3 years with equal annual payments. a) (10 points) Loan calculations principal and interest payments. (Round off values to the nearest dollar) b) (25 points) Find the ATCF for each year of this investment (Round ot'fvalues to the nearest dollar)

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