Question: You consider purchasing a new computing system, including networking, for your sales force for $112,000. The system has a 6-year useful life and no salvage

You consider purchasing a new computing system, including networking, for your

You consider purchasing a new computing system, including networking, for your sales force for $112,000. The system has a 6-year useful life and no salvage value. Your sales force is expected togenerate an additional $37,000 of net income before taxes and depreciation each year by using thisupgraded system. The combined federal and state income tax rate = 40%. Annual inflation = 4%. a. Fill in the following table assuming MACRS depreciation rates b. If your MARR = 15%, should you purchase this system based on your real after-tax income? Why or why not

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