Please Help!!

2 (15 pts) Alpha Semiconductor Co. is evaluating whether to add another IC production line. The line would cost $20000 and would have no market value at the end of its 7 year life. The facility would be depreciated using straight line depreciation. Gross income (GI) and annual operating costs (AOC) are expected to be $5000 and $1600 in year 1, respectively. GI and AOC are expected to increase by $200 per year for the next 6 years. The company's effective tax rate is 40% and it uses an after-tax MARR of 15%. Is it worthwhile to invest? DE Year P GI E CFBT D DR CG CL TI T CFAT 0 1 2 3 4 5 6 7 i 15% F/P P/F A/F FIA A/P PIA P/G A/G 1 1.1500 0.8696 1.0000 1.0000 1.1500 0.8696 0.0000 0.0000 2 1.3225 0.7561 0.4651 1.6257 0.7561 0.4651 2.1500 0.6151 3.4725 0.4380 3 1.5209 0.6575 0.2880 2.2832 2.0712 0.9071 2 (15 pts) Alpha Semiconductor Co. is evaluating whether to add another IC production line. The line would cost $20000 and would have no market value at the end of its 7 year life. The facility would be depreciated using straight line depreciation. Gross income (GI) and annual operating costs (AOC) are expected to be $5000 and $1600 in year 1, respectively. GI and AOC are expected to increase by $200 per year for the next 6 years. The company's effective tax rate is 40% and it uses an after-tax MARR of 15%. Is it worthwhile to invest? DE Year P GI E CFBT D DR CG CL TI T CFAT 0 1 2 3 4 5 6 7 i 15% F/P P/F A/F FIA A/P PIA P/G A/G 1 1.1500 0.8696 1.0000 1.0000 1.1500 0.8696 0.0000 0.0000 2 1.3225 0.7561 0.4651 1.6257 0.7561 0.4651 2.1500 0.6151 3.4725 0.4380 3 1.5209 0.6575 0.2880 2.2832 2.0712 0.9071