Please show the formula for ppmt and pmit for this question *** DO NOT USE EXCEL***

Startup is considering buying a $300,000 piece of equipment. If if purchases the couples)

will take a loan for the entire amount: lhe interest on the loan la 3%, and the loan will be repaid in

5 equal end of year payments. The startup estimates that the equipment would generate. a

additional $1 60,000 of revenue each year. Al the end of S years, the equipment would have!

salvage value of $20,000. The tax rate is 25%. Assuming a planning horizon of S years, chat the

equipment is depreciated using MARS (3-year property lass), and that the medical practice unce

an after-tax MARR of 7%.

(a) compute the PW aud determine whether the startup should invest in the equipment.

(b) re-compute the pw if there exists a 4% inflation/year. would you decision change?

(you should show all the procedure to get full score) will take a loan for the buying a $300,000 piece of equipment. If it purchases the equipment, it 5 equal end of year paymentions amount the interest on the loan is 3%, and the loan will be repaid in additional $160,000 of revenue The startup estimates that the equipment would generate an salvage value of $20,000. The tax rate is 25% the end of 5 years, the equipment would have a equipment is depreciated trsing MACRS (3-year property elaz), and that the medical practice uses an after-tax MARR of 7%, (a) compute the PW ard determine whether the startup should invest in the equipment. ( 30 points) part b: re-compute the pw if there exists a 4% inflation/year. would you decision change