Question: Please help with showing calculations, I'm not exactly sure how to do this problem. Thank you! Sean runs a construction business. Sean operates his business

Please help with showing calculations, I'm not exactly sure how to do this problem. Thank you!
Sean runs a construction business. Sean operates his business as a sole proprietorship and expects to be in a 35% marginal tax rate for all years pertinent to this decision. Sean intends to purchase a new SUV at the beginning of 2020 for use in his construction business (100% business use) that he will use for 6 years and then give the vehicle to his son for college. He is considering the following two vehicles: (1) Land Rover Range Rover Sport Autobiography: purchase price = $92,500. (2) Land Rover Discovery First Edition: purchase price = $80,000. The Range Rover Sport Autobiography weighs in at a hefty 6,600 pounds (and is, therefore, not subject to the luxury auto limits on depreciation). The Discovery First Edition gross vehicle weight is approximately 5,700 pounds (and is therefore, subject to the luxury auto limits on depreciation for trucks & SUVs). REQUIRED: Perform a discounted cash-flow analysis of the two SUVs to determine if Sean would minimize his after-tax costs by acquiring the Range Rover Sport Autobiography or the Discovery First Edition. You should take into account any elections that provide optimal income tax outcome. . In making your calculations, assume the following: Sean will pay cash for either vehicle he purchases; 35% marginal tax rate for all years, All tax savings occur at year-end; 6% discount rate to compute the present value of future cash flows; depreciation rates for as follows: 2020 Luxury Limits Normal MACRS Rates S 18,100 20.0% 16.100 32.0% 9,700 19.2% 5,760 11.52% 5,760 11.52% 5,760 5.76% VI 1 VE 2 XI. 3 VI.4 XI. 5 VI 6 Range Rover Sport Autobiography Discovery First Edition
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