PRO Engineering is considering whether to purchase or rent ground moving equipment. The data associated with the purchase is as follows Initial cost = $150,000 Residual value = $12,000 Maintenance cost = $1,800/per year Operator cost per day = $300/day If the equipment is rented, the operator cost is incurred at the rate of $300 per day and $100 for the daily rental of the equipment. Determine the minimum number of days per year the equipment must be used to justify the purchase. Use an interest rate of 7%. (10 points) Consider a piece of equipment that has a cost of $160,000 and a depreciable life of 8 years, which is depreciated on a straight-line basis. The income earned from the use of the equipment is 25,000 per year. Considering inflation of 3% per year and a tax rate of 23%, determine the after-tax cash flow for the fourth year. (14 points) BTCF R$ BTCFA$ BTCFAS DEP IT IMP ATCE AS |ATCF R$