x - More Info Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 GDS Recovery Rates (ru) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 Print Done The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? More Info N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 13% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1300 0.8850 1.0000 0.8850 1.0000 1.2769 0.7831 2.1300 1.6681 0.4695 1.4429 0.6931 3.4069 2.3612 0.2935 1.6305 0.6133 4.8498 2.9745 0.2062 1.8424 0.5428 6.4803 3.5172 0.1543 2.0820 0.4803 8.3227 3.9975 0.1202 2.3526 0.4251 10.4047 4.4226 0.0961 2.6584 0.3762 12.7573 4.7988 0.0784 3.0040 0.3329 15.4157 5.1317 0.0649 3.3946 0.2946 18.4197 5.4262 0.0543 Capital Recovery Factor To Find A Given P AIP 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843 Complete the blank cells in the table below. (Round to the nearest dollar.) EOY Taxable income, BTCF, S Depreciation, S Income Tax (21%), $ ATCFS 0 1 93,000 -5,019 2 93,000 - 17,560 96,688 3 93,000 -5,599 4 93,000 5 93,000 73,099 - 15,351 5 20.000 0 The PW value of the ATCF under this investment is $ (Round to the nearest dollar) This is a good investment x - More Info Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 GDS Recovery Rates (ru) for the Six Personal Property Classes Recovery Period (and Property Class) 3-year 5-year 7-year 10-year 15-year 0.3333 0.2000 0.1429 0.1000 0.0500 0.4445 0.3200 0.2449 0.1800 0.0950 0.1481 0.1920 0.1749 0.1440 0.0855 0.0741 0.1152 0.1249 0.1152 0.0770 0.1152 0.0893 0.0922 0.0693 0.0576 0.0892 0.0737 0.0623 0.0893 0.0655 0.0590 0.0446 0.0655 0.0590 0.0656 0.0591 0.0655 0.0590 0.0328 0.0591 0.0590 0.0591 0.0590 0.0591 20-year 0.0375 0.0722 0.0668 0.0618 0.0571 0.0528 0.0489 0.0452 0.0447 0.0447 0.0446 0.0446 0.0446 0.0446 0.0446 Print Done The CFO of Acme Manufacturing is considering the purchase of a special diamond-tipped cutting tool. This tool has the following initial costs to put into service. Acme will use cash to pay for all of these expenses, some of which was borrowed on a long-term credit line with the local bank. The CFO has been directed by Acme to use the MACRS depreciation method with a GDS recovery period of 5 years. Assume the tool is sold in the fifth year for $20,000. Is this a good investment? More Info N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i = 13% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.1300 0.8850 1.0000 0.8850 1.0000 1.2769 0.7831 2.1300 1.6681 0.4695 1.4429 0.6931 3.4069 2.3612 0.2935 1.6305 0.6133 4.8498 2.9745 0.2062 1.8424 0.5428 6.4803 3.5172 0.1543 2.0820 0.4803 8.3227 3.9975 0.1202 2.3526 0.4251 10.4047 4.4226 0.0961 2.6584 0.3762 12.7573 4.7988 0.0784 3.0040 0.3329 15.4157 5.1317 0.0649 3.3946 0.2946 18.4197 5.4262 0.0543 Capital Recovery Factor To Find A Given P AIP 1.1300 0.5995 0.4235 0.3362 0.2843 0.2502 0.2261 0.2084 0.1949 0.1843 Complete the blank cells in the table below. (Round to the nearest dollar.) EOY Taxable income, BTCF, S Depreciation, S Income Tax (21%), $ ATCFS 0 1 93,000 -5,019 2 93,000 - 17,560 96,688 3 93,000 -5,599 4 93,000 5 93,000 73,099 - 15,351 5 20.000 0 The PW value of the ATCF under this investment is $ (Round to the nearest dollar) This is a good investment