Your answer is partially correct. Astartup is considering buying a $375.000 piece of equipment. If it purchases the equipment, it will take a loan for the entire amount: the interest on the loan is 3%, and the loan will be repaid in 5 equal end of year payments. The startup estimates that the equipment would generate an additional $190,000 of revenue each year. At the end of 5 years, the equipment would have a salvage value of $20,000. The tax rate is 26%. Assuming a planning horizon of 5 years, that the equipment is depreciated using MACRS (3-year property class), and that the medical practice uses an after-tax MARR of 7%, compute the PW and determine whether the startup should invest in the equipment. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property $ 885213.58 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is $10. Should the startup invest in the new equipment? Yes Terythank and Media Your answer is partially correct. Astartup is considering buying a $375.000 piece of equipment. If it purchases the equipment, it will take a loan for the entire amount: the interest on the loan is 3%, and the loan will be repaid in 5 equal end of year payments. The startup estimates that the equipment would generate an additional $190,000 of revenue each year. At the end of 5 years, the equipment would have a salvage value of $20,000. The tax rate is 26%. Assuming a planning horizon of 5 years, that the equipment is depreciated using MACRS (3-year property class), and that the medical practice uses an after-tax MARR of 7%, compute the PW and determine whether the startup should invest in the equipment. Click here to access the TVM Factor Table calculator. Click here to access the MACRS-GDS Property Classes. Click here to access the MACRS-GDS percentages page. Click here to access the MACRS-GDS percentages for 27.5-year residential rental property $ 885213.58 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is $10. Should the startup invest in the new equipment? Yes Terythank and Media