Section 3: Capital Tax Factor Analysis 3i 1. Initial cost- $800,000. 2, After-Tax MARR#6%. 3. Depreciation Taye#25% 4, Income tax rate-50%. 5. Inflation rate-0%. 6. Salvage values and annual expenses (0+M) as shown in the table. 41Page 800,000 720,000 648,000 83,200 524,880 472,392 425.153 382,638 44,374 Same values as in the previous table. 70,000 80,500 92,575 106,461 122,430 140,795 161.914 186,201 5 The loader's annual equivalent cost (nearest a) 98,300; b) 107,400; c) 109,600; d) 111,900 20. $100) for a five-year service life is The loader's annual equivalent cost (nearest $100) for a seven-year service life is a) 99,600; b) 113,500; c) 116,600; d) 118,700 21. How many (full) years should the equipment be in service to minimize after-tax costs? a) 3 years, b) 4 years; c) 5 years; d) 7 years. 22. Section 3: Capital Tax Factor Analysis 3i 1. Initial cost- $800,000. 2, After-Tax MARR#6%. 3. Depreciation Taye#25% 4, Income tax rate-50%. 5. Inflation rate-0%. 6. Salvage values and annual expenses (0+M) as shown in the table. 41Page 800,000 720,000 648,000 83,200 524,880 472,392 425.153 382,638 44,374 Same values as in the previous table. 70,000 80,500 92,575 106,461 122,430 140,795 161.914 186,201 5 The loader's annual equivalent cost (nearest a) 98,300; b) 107,400; c) 109,600; d) 111,900 20. $100) for a five-year service life is The loader's annual equivalent cost (nearest $100) for a seven-year service life is a) 99,600; b) 113,500; c) 116,600; d) 118,700 21. How many (full) years should the equipment be in service to minimize after-tax costs? a) 3 years, b) 4 years; c) 5 years; d) 7 years. 22