Problem $8$:

Use the data from problem $7,$ straight line depreciation. This asset will bring in a total of $$22,500$ in income each year, and your company has a $34\%$ marginal tax rate. Ultimately, you end up selling the asset in year $4$ for $$25,000.$ Complete the tax schedule below:

Does the ATCF meet the companys MARR of $18\%$

UPDATED INFO:

Problem $7$:

Your company is purchasing a piece of equipment for $$60,000,$ which will have a salvage value of $$4,000$ after $8$ years. You have been asked to compare MACSS with Straight$-$line depreciation. Complete the depreciation schedule below $($note that the equipment is considered a $7$ year asset with MACRS$).$A$)$ What is the book value for the asset at the end of year $4$ using each method?

B$)$ What is the present value of the of the straight line depreciation $($assuming an $8\%$ interest rate$)?$