Question: solve using engineering economics methods 6) (45 points) Emkay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this

 solve using engineering economics methods 6) (45 points) Emkay, Inc. is

solve using engineering economics methods

6) (45 points) Emkay, Inc. is considering the purchase of new automated equipment to increase its production capacity. For this purchase, the following data apply Purchase price - $450,000 $150,000 from own funds (equity) and $300,000 from a loan Equipment Life: 4 years Depreciation: MACRS-GDS 3-year property Estimated salvage: $112.500 Effective tax rate: 35% FOY Expected O&M Costs Estimated revenue $75,000 $180,000 $90,000 $200.000 $90,000 $225.000 $100,000 $300,000 Conditions on loan: $300,000 borrowed at a nominal rate of 10% per year compounded annually. The loan is to be repaid over 3 years with equal annual payments. a) (15 points) Loan calculations - principal and interest payments. (Round off values to the nearest dollar) b) (30 points) Find the ATCF for each year of this investment (Round off values to the nearest dollar) BOY BT&LCE Tax ATCE Lean Principal Payment Lauan Interest Payment MACRS-GDS Taxable income Deduction

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