PROBLEM 10.65
BASIS $190,000.00 LOAN PRINC $100,000.00 REAL BTCF $45,000.00 TAX RATE 40.00% INFL RATE= 3.90%
EST SALV $5,000.00 LOAN PERIOD 6 BTCF INCR $0.00 USEFUL LIFE 12
MARRr=10.00%
RCVD SALV $5,000.00 LOAN INT 13.00% METHOD 1 PERIODS 12
MARRc=14.29%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $Ttax $TATCF $TATCF+ $TATCF- $TATCF MACRS(7)
0 -$190,000.00 -$100,000.00 -$90,000.00 $0.00 $90,000.00 -$90,000.00
1 $46,755.00 $0.00 $13,000.00 $27,151.00 $6,604.00 $2,641.60 $31,113.40 $31,113.40 $0.00 $0.00 14.29%
2 $48,578.45 $0.00 $13,000.00 $46,531.00 -$10,952.56 -$4,381.02 $39,959.47 $39,959.47 $0.00 $0.00 24.49%
3 $50,473.00 $0.00 $13,000.00 $33,231.00 $4,242.00 $1,696.80 $35,776.20 $35,776.20 $0.00 $0.00 17.49%
4 $52,441.45 $0.00 $13,000.00 $23,731.00 $15,710.45 $6,284.18 $33,157.27 $33,157.27 $0.00 $0.00 12.49%
5 $54,486.67 $0.00 $13,000.00 $16,967.00 $24,519.67 $9,807.87 $31,678.80 $31,678.80 $0.00 $0.00 8.93%
6 $56,611.65 $100,000.00 $13,000.00 $16,948.00 $26,663.65 $10,665.46 -$67,053.81 $0.00 $67,053.81 -$67,053.81 8.92%
7 $58,819.50 $0.00 $0.00 $16,967.00 $41,852.50 $16,741.00 $42,078.50 $42,078.50 $0.00 $0.00 8.93%
8 $61,113.46 $0.00 $0.00 $8,474.00 $52,639.46 $21,055.79 $40,057.68 $40,057.68 $0.00 $0.00 4.46%
9 $63,496.89 $0.00 $0.00 $0.00 $63,496.89 $25,398.76 $38,098.13 $38,098.13 $0.00 $0.00
10 $65,973.27 $0.00 $0.00 $0.00 $65,973.27 $26,389.31 $39,583.96 $39,583.96 $0.00 $0.00
11 $68,546.22 $0.00 $0.00 $0.00 $68,546.22 $27,418.49 $41,127.73 $41,127.73 $0.00 $0.00
12 $79,132.81 $0.00 $0.00 $0.00 $79,132.81 $31,653.12 $47,479.68 $47,479.68 $0.00 $936,887.19
SUM DEPR
MARRc=14.29%
$190,000.00
PW$T = $68,533.67
BOOK VALUE
FW$T = $340,410.35
$0.00
AW$T = $12,262.16
IRRc=31.05%
ERRc=19.25%
IRRr=26.13%
ERRr=14.77%
a AS SHOWN
b
PW$T = $68,533.67
c
AW$T = $12,262.16
d
FW$T = $340,410.35
e
IRRc=31.05%
f
ERRc=19.25%
g
IRRr=26.13%
h
ERRr=14.77%
PROBLEM 10.66
BASIS $190,000.00 LOAN PRINC $100,000.00 REAL BTCF $45,000.00 TAX RATE 40.00% INFL RATE= 3.90%
EST SALV $5,000.00 LOAN PERIOD 6 BTCF INCR $0.00 USEFUL LIFE 12
MARRr=10.00%
RCVD SALV $5,000.00 LOAN INT 13.00% METHOD 1 PERIODS 12
MARRc=14.29%
EOY $RBTLCF $RPPMT $RIPMT $RDWO $RTI $RTax $RATCF $RATCF+ $RATCF- $RATCF MACRS(7)
0 -$190,000.00 -$100,000.00 -$90,000.00 $0.00 $90,000.00 -$90,000.00
1 $45,000.00 $0.00 $12,512.03 $26,131.86 $6,356.11 $2,542.44 $29,945.52 $29,945.52 $0.00 $0.00 14.29%
2 $45,000.00 $0.00 $12,042.38 $43,103.38 -$10,145.75 -$4,058.30 $37,015.92 $37,015.92 $0.00 $0.00 24.49%
3 $45,000.00 $0.00 $11,590.35 $29,627.62 $3,782.03 $1,512.81 $31,896.84 $31,896.84 $0.00 $0.00 17.49%
4 $45,000.00 $0.00 $11,155.30 $20,363.57 $13,481.14 $5,392.45 $28,452.25 $28,452.25 $0.00 $0.00 12.49%
5 $45,000.00 $0.00 $10,736.57 $14,012.88 $20,250.55 $8,100.22 $26,163.21 $26,163.21 $0.00 $0.00 8.93%
6 $45,000.00 $79,488.94 $10,333.56 $13,471.79 $21,194.65 $8,477.86 -$53,300.36 $0.00 $53,300.36 -$53,300.36 8.92%
7 $45,000.00 $0.00 $0.00 $12,980.64 $32,019.36 $12,807.74 $32,192.26 $32,192.26 $0.00 $0.00 8.93%
8 $45,000.00 $0.00 $0.00 $6,239.71 $38,760.29 $15,504.12 $29,495.88 $29,495.88 $0.00 $0.00 4.46%
9 $45,000.00 $0.00 $0.00 $0.00 $45,000.00 $18,000.00 $27,000.00 $27,000.00 $0.00 $0.00
10 $45,000.00 $0.00 $0.00 $0.00 $45,000.00 $18,000.00 $27,000.00 $27,000.00 $0.00 $0.00
11 $45,000.00 $0.00 $0.00 $0.00 $45,000.00 $18,000.00 $27,000.00 $27,000.00 $0.00 $0.00
12 $50,000.00 $0.00 $0.00 $0.00 $50,000.00 $20,000.00 $30,000.00 $30,000.00 $0.00 $591,971.40
SUM DEPR
MARRr=10.00% SUM
$165,931.43
PW$C = $68,533.67 100.00%
BOOK VALUE
FW$C = $215,088.00
$0.00
AW$C = $10,058.23
IRRr = 26.13%
ERRr = 14.77%
IRRc = 31.05%
ERRc = 19.25%
a AS SHOWN
b
PW$C = $68,533.67
c
AW$C = $10,058.23
d
FW$C = $215,088.00
e
IRRr = 26.13%
f
ERRr = 14.77%
g
IRRc = 31.05%
h
ERRc = 19.25%
PROBLEM 10.67
a BASIS $1,400,000.00 LOAN PRINC $800,000.00 REAL BTCF $400,000.00 TAX RATE 40.00% INFL RATE= 4.20%
EST SALV $200,000.00 LOAN PERIOD 8 BTCF INCR $0.00 USEFUL LIFE 8
MARRr=10.00%
RCVD SALV $200,000.00 LOAN INT 12.00% METHOD 1 PERIODS 8
MARRc=14.62%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$1,400,000.00 -$800,000.00 -$600,000.00 $0.00 $600,000.00 -$600,000.00
1 $416,800.00 $0.00 $96,000.00 $280,000.00 $40,800.00 $16,320.00 $304,480.00 $304,480.00 $0.00 $0.00 20.00%
2 $434,305.60 $0.00 $96,000.00 $448,000.00 -$109,694.40 -$43,877.76 $382,183.36 $382,183.36 $0.00 $0.00 32.00%
3 $452,546.44 $0.00 $96,000.00 $268,800.00 $87,746.44 $35,098.57 $321,447.86 $321,447.86 $0.00 $0.00 19.20%
4 $471,553.39 $0.00 $96,000.00 $161,280.00 $214,273.39 $85,709.35 $289,844.03 $289,844.03 $0.00 $0.00 11.52%
5 $491,358.63 $0.00 $96,000.00 $161,280.00 $234,078.63 $93,631.45 $301,727.18 $301,727.18 $0.00 $0.00 11.52%
6 $511,995.69 $0.00 $96,000.00 $80,640.00 $335,355.69 $134,142.28 $281,853.41 $281,853.41 $0.00 $0.00 5.76%
7 $533,499.51 $0.00 $96,000.00 $0.00 $437,499.51 $174,999.80 $262,499.71 $262,499.71 $0.00 $0.00
8 $833,859.73 $800,000.00 $96,000.00 $0.00 $737,859.73 $295,143.89 -$357,284.16 $0.00 $357,284.16 $3,562,451.30
SUM DEPR
MARRc=14.62%
MARRr=10.00%
MARRc=14.62%
MARRc=14.62%
MARRr=10.00%
MARRc=14.62%
MARRc=15%
MARRr=10.00%
MARRc=14.62%
$1,400,000.00
PW$T = $619,739.83
BOOK VALUE
FW$T = $1,846,259.08
$0.00
AW$T = $136,387.65
IRRc=58.31%
ERRc=25.25%
IRRr=51.93%
ERRr=20.20%
e METHOD 4 IS THE PREFERRED METHOD DUE TO ITS HIGHER PW
PROBLEM 10.68
a BASIS $9,000,000.00 LOAN PRINC $4,000,000.00 REAL BTCF $6,000,000.00 TAX RATE 40.00% INFL RATE= 4.00%
EST SALV $700,000.00 LOAN PERIOD 6 BTCF INCR -$1,000,000.00 USEFUL LIFE 6
MARRr=18.00%
RCVD SALV $700,000.00 LOAN INT 12.00% METHOD 1 PERIODS 6
MARRc=22.72%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$9,000,000.00 -$4,000,000.00 -$5,000,000.00 $0.00 $5,000,000.00 -$5,000,000.00
1 $6,240,000.00 $0.00 $480,000.00 $1,800,000.00 $3,960,000.00 $1,584,000.00 $4,176,000.00 $4,176,000.00 $0.00 $0.00 20.00%
2 $5,408,000.00 $0.00 $480,000.00 $2,880,000.00 $2,048,000.00 $819,200.00 $4,108,800.00 $4,108,800.00 $0.00 $0.00 32.00%
3 $4,499,456.00 $0.00 $480,000.00 $1,728,000.00 $2,291,456.00 $916,582.40 $3,102,873.60 $3,102,873.60 $0.00 $0.00 19.20%
4 $3,509,575.68 $0.00 $480,000.00 $1,036,800.00 $1,992,775.68 $797,110.27 $2,232,465.41 $2,232,465.41 $0.00 $0.00 11.52%
5 $2,433,305.80 $0.00 $480,000.00 $1,036,800.00 $916,505.80 $366,602.32 $1,586,703.48 $1,586,703.48 $0.00 $0.00 11.52%
6 $2,151,042.33 $4,000,000.00 $480,000.00 $518,400.00 $1,152,642.33 $461,056.93 -$2,790,014.60 $0.00 $2,790,014.60 $29,196,677.42 5.76%
SUM DEPR
MARRc=22.72%
$9,000,000.00
PW$T = $3,547,544.14
BOOK VALUE
FW$T = $12,117,691.37
$0.00
AW$T = $1,139,640.14
MARRc=22.72%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
MARRc=22.72%
PW$T = $2,929,877.79
FW$T = $10,007,868.38
AW$T = $941,216.29
MARRr=18.00%
MARRc=22.72%
MARRc=22.72%
PW$T = $3,021,558.55
FW$T = $10,321,031.27
AW$T = $970,668.52
MARRr=18.00%
MARRc=22.72%
MARRc=22.72%
PW$T = $3,759,823.63
FW$T = $12,842,795.08
AW$T = $1,207,834.43
PROBLEM 10.69
COST BASIS = $250,000
INCOME TAX RATE = 40%
INFLATION RATE = 4%
REAL ATMARR = 8%
MACRS PROPERTY CLASS = 5
LOAN RATE = 12%
COMBINED ATMARR = 12.3200%
SINCE LOAN RATE < COMBINED ATMARR, USE LOAN PLAN 4: SINGLE PAYMENT AT EOY = 5
a) EOY $CBTCF $TBTCF $TDWO $TPPMT $TIPMT $TTI $TT $TATCF $CATCF
0 -$250,000.00 -$250,000.00 -$100,000.00 -$150,000.00 -$150,000.00
1 $50,000.00 $52,000.00 $50,000.00 $0.00 $0.00 $2,000.00 $800.00 $51,200.00 $49,230.77
2 $50,000.00 $54,080.00 $80,000.00 $0.00 $0.00 -$25,920.00 -$10,368.00 $64,448.00 $59,585.80
3 $50,000.00 $56,243.20 $48,000.00 $0.00 $0.00 $8,243.20 $3,297.28 $52,945.92 $47,068.73
4 $50,000.00 $58,492.93 $28,800.00 $0.00 $0.00 $29,692.93 $11,877.17 $46,615.76 $39,847.34
5 $50,000.00 $60,832.65 $28,800.00 $100,000.00 $76,234.17 -$44,201.52 -$17,680.61 -$97,720.91 -$80,319.47
6 $50,000.00 $63,265.95 $14,400.00 $48,865.95 $19,546.38 $43,719.57 $34,552.21
7 $100,000.00 $131,593.18 $131,593.18 $52,637.27 $78,955.91 $60,000.00
or EOY $CBTCF $CTDWO $CPPMT $CIPMT $CTI $CT $CATCF
0 -$250,000.00 -$100,000.00 $0.00 -$150,000.00
1 $50,000.00 $48,076.92 $0.00 $0.00 $1,923.08 $769.23 $49,230.77
2 $50,000.00 $73,964.50 $0.00 $0.00 -$23,964.50 -$9,585.80 $59,585.80
3 $50,000.00 $42,671.83 $0.00 $0.00 $7,328.17 $2,931.27 $47,068.73
4 $50,000.00 $24,618.36 $0.00 $0.00 $25,381.64 $10,152.66 $39,847.34
5 $50,000.00 $23,671.50 $82,192.71 $62,658.93 -$36,330.43 -$14,532.17 -$80,319.47
6 $50,000.00 $11,380.53 $38,619.47 $15,447.79 $34,552.21
7 $100,000.00 $100,000.00 $40,000.00 $60,000.00
PW = $15,442.02
or PW = $15,442.02
b)
IRRr = 11.824%
PROBLEM 10.70
COST BASIS = $250,000
INCOME TAX RATE = 40%
INFLATION RATE = 3%
REAL ATMARR = 7%
MACRS PROPERTY CLASS = 7
LOAN RATE = 18%
COMBINED ATMARR = 10.2100%
(COMBINED ATMARR)/(1-ITR) = 17.0167%
SINCE LOAN RATE > (COMBINED ATMARR )/(1-ITR), USE LOAN PLAN 2: EQUAL PRINCIPAL PAYMENTS
EOY $CBTCF $TBTCF $TDWO $TPPMT $TIPMT $TTI $TT $TATCF $CATCF
0 -$250,000.00 -$250,000.00 -$200,000.00 -$50,000.00 -$50,000.00
1 $40,000.00 $41,200.00 $35,725.00 $40,000.00 $36,000.00 -$30,525.00 -$12,210.00 -$22,590.00 -$21,932.04
2 $40,000.00 $42,436.00 $61,225.00 $40,000.00 $28,800.00 -$47,589.00 -$19,035.60 -$7,328.40 -$6,907.72
3 $40,000.00 $43,709.08 $43,725.00 $40,000.00 $21,600.00 -$21,615.92 -$8,646.37 -$9,244.55 -$8,460.07
4 $40,000.00 $45,020.35 $31,225.00 $40,000.00 $14,400.00 -$604.65 -$241.86 -$9,137.79 -$8,118.81
5 $140,000.00 $162,298.37 $11,162.50 $40,000.00 $7,200.00 $76,998.37 $30,799.35 $84,299.02 $72,717.08
$TB5 = $66,937.50
or EOY $CBTCF $CTDWO $CPPMT $CIPMT $CTI $CT $CATCF
0 -$250,000.00 -$200,000.00 $0.00 -$50,000.00
1 $40,000.00 $34,684.47 $38,834.95 $34,951.46 -$29,635.92 -$11,854.37 -$21,932.04
2 $40,000.00 $57,710.43 $37,703.84 $27,146.76 -$44,857.20 -$17,942.88 -$6,907.72
3 $40,000.00 $40,014.57 $36,605.67 $19,767.06 -$19,781.63 -$7,912.65 -$8,460.07
4 $40,000.00 $27,743.01 $35,539.48 $12,794.21 -$537.22 -$214.89 -$8,118.81
5 $140,000.00 $9,628.87 $34,504.35 $6,210.78 $66,419.47 $26,567.79 $72,717.08
$cB5 = $57,740.88
PW = -$37,784.17
or PW = -$37,784.17
PROBLEM 10.71
COST BASIS = $600,000
INCOME TAX RATE = 40%
INFLATION RATE = 3%
REAL ATMARR = 10%
MACRS PROPERTY CLASS = 3
LOAN RATE = 10%
COMBINED ATMARR = 13.3000%
SINCE LOAN RATE < COMBINED ATMARR, USE LOAN PLAN 4: SINGLE PAYMENT AT EOY = 5
a) EOY $CBTCF $TBTCF $TDWO $TPPMT $TIPMT $TTI $TT $TATCF $CATCF
0 -$600,000.00 -$600,000.00 -$400,000.00
-$200,000.00 -$200,000.00
1 $200,000.00 $206,000.00 $199,980.00 $0.00 $0.00 $6,020.00 $2,408.00 $203,592.00 $197,662.14
2 $200,000.00 $212,180.00 $266,700.00 $0.00 $0.00 -$54,520.00 -$21,808.00 $233,988.00 $220,556.13
3 $200,000.00 $218,545.40 $88,860.00 $0.00 $0.00 $129,685.40 $51,874.16 $166,671.24 $152,527.80
4 $200,000.00 $225,101.76 $44,460.00 $0.00 $0.00 $180,641.76 $72,256.70 $152,845.06 $135,800.85
5 $400,000.00 $463,709.63 $0.00 $400,000.00 $244,204.00 $219,505.63 $87,802.25 -$268,296.62 -$231,435.02
or EOY $CBTCF $CTDWO $CPPMT $CIPMT $CTI $CT $CATCF
0 -$600,000.00 -$400,000.00 $0.00
-$200,000.00
1 $200,000.00 $194,155.34 $0.00 $0.00 $5,844.66 $2,337.86 $197,662.14
2 $200,000.00 $251,390.33 $0.00 $0.00 -$51,390.33 -$20,556.13 $220,556.13
3 $200,000.00 $81,319.49 $0.00 $0.00 $118,680.51 $47,472.20 $152,527.80
4 $200,000.00 $39,502.13 $0.00 $0.00 $160,497.87 $64,199.15 $135,800.85
5 $400,000.00 $0.00 $345,043.51 $210,652.52 $189,347.48 $75,738.99 -$231,435.02
PW = $225,617.91
or PW = $225,617.91
b)
IRRr = 82.757%
MODIFIED ACRS RATES – GDS
MACRS CL 3-YR 5-YR 7-YR 10-YR 15-YR 20-YR
ADR <=4 >4 to <10 >=10 to <16 .=16 to <20 >=20 to <25 >=25
%200% 200% 200% 200% 150% 150%
1 33.33% 20.00% 14.29% 10.00% 5.00% 3.750%
2 44.45% 32.00% 24.49% 18.00% 9.50% 7.219%
3 14.81% 19.20% 17.49% 14.40% 8.55% 6.677%
4 7.41% 11.52% 12.49% 11.52% 7.70% 6.177%
5 11.52% 8.93% 9.22% 6.93% 5.713%
6 5.76% 8.92% 7.37% 6.23% 5.285%
7 8.93% 6.55% 5.90% 4.888%
8 4.46% 6.55% 5.90% 4.522%
9 6.56% 5.91% 4.462%
10 6.55% 5.90% 4.461%
11 3.28% 5.91% 4.462%
12 5.90% 4.461%
13 5.91% 4.462%
14 5.90% 4.461%
15 5.91% 4.462%
16 2.95% 4.461%
17 4.462%
18 4.461%
19 4.462%
20 4.461%
21 2.231%
SUM 100.00% 100.00% 100.00% 100.00% 100.00% 100.000%
BASIS $500,000.00 REAL BTCF $124,166.67 INFL RATE= 4.00%
EST SALV $50,000.00 BTCF INCR $0.00 TAX RATE 40.00%
RCVD SALV $50,000.00 USEFUL LIFE 10
MARRr=10.00%
PERIODS 10
MARRc=14.40%
EOY ACTUAL BTCF DWO TI T ACTUAL ATCF MACRS(5)
0 -$500,000.00 -$500,000.00
1 $129,133.34 $100,000.00 $29,133.34 $11,653.33 $117,480.00 20.00%
2 $134,298.67 $160,000.00 -$25,701.33 -$10,280.53 $144,579.20 32.00%
3 $139,670.62 $96,000.00 $43,670.62 $17,468.25 $122,202.37 19.20%
4 $145,257.44 $57,600.00 $87,657.44 $35,062.98 $110,194.47 11.52%
5 $151,067.74 $57,600.00 $93,467.74 $37,387.10 $113,680.64 11.52%
6 $157,110.45 $28,800.00 $128,310.45 $51,324.18 $105,786.27 5.76%
7 $163,394.87 $0.00 $163,394.87 $65,357.95 $98,036.92
8 $169,930.66 $0.00 $169,930.66 $67,972.26 $101,958.40
9 $176,727.89 $0.00 $176,727.89 $70,691.16 $106,036.73
10 $257,809.22 $0.00 $257,809.22 $103,123.69 $154,685.53
SUM DEPR
MARRc=14.40%
$500,000.00
PW$T = $109,201.18
BOOK VALUE
FW$T = $419,264.00
$0.00
AW$T = $21,263.15
IRRc=19.99%
ERRc=16.68% ERRc=16.68%
IRRr=15.38%
ERRr=12.19%
BASIS $500,000.00 REAL BTCF $124,166.67 INFL RATE= 4.00%
EST SALV $50,000.00 BTCF INCR $0.00 TAX RATE 40.00%
RCVD SALV $50,000.00 USEFUL LIFE 10
MARRr=10.00%
PERIODS 10
MARRc=14.40%
EOY REAL BTCF REAL DWO TI T REAL ATCF MACRS(5)
0 -$500,000.00 -$500,000.00
1 $124,166.67 $96,153.85 $28,012.82 $11,205.13 $112,961.54 20.00%
2 $124,166.67 $147,928.99 -$23,762.32 -$9,504.93 $133,671.60 32.00%
3 $124,166.67 $85,343.65 $38,823.02 $15,529.21 $108,637.46 19.20%
4 $124,166.67 $49,236.72 $74,929.95 $29,971.98 $94,194.69 11.52%
5 $124,166.67 $47,343.00 $76,823.67 $30,729.47 $93,437.20 11.52%
6 $124,166.67 $22,761.06 $101,405.61 $40,562.24 $83,604.43 5.76%
7 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
8 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
9 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
10 $174,166.67 $0.00 $174,166.67 $69,666.67 $104,500.00
SUM DEPR
MARRr=10.00% SUM MACRS
$448,767.27
PW$C = $109,201.18 100.00%
BOOK VALUE
FW$C = $283,239.74
$0.00
AW$C = $17,771.99
IRRr = 15.38%
ERRr = 12.19% ERRr = 12.19%
IRRc = 19.99%
ERRc = 16.68%
BASIS $500,000.00 ACTUAL BTCF $124,166.67 INFL RATE= 4.00%
EST SALV $50,000.00 BTCF INCR $0.00 TAX RATE 40.00%
RCVD SALV $50,000.00 USEFUL LIFE 10
MARRr=10.00%
PERIODS 10
MARRc=14.40%
EOY REAL BTCF DWO TI T REAL ATCF MACRS(5)
0 -$500,000.00 -$500,000.00
1 $119,391.03 $96,153.85 $23,237.18 $9,294.87 $110,096.16 20.00%
2 $114,799.07 $147,928.99 -$33,129.93 -$13,251.97 $128,051.04 32.00%
3 $110,383.72 $85,343.65 $25,040.07 $10,016.03 $100,367.69 19.20%
4 $106,138.19 $49,236.72 $56,901.47 $22,760.59 $83,377.60 11.52%
5 $102,055.95 $47,343.00 $54,712.95 $21,885.18 $80,170.77 11.52%
6 $98,130.72 $22,761.06 $75,369.66 $30,147.87 $67,982.86 5.76%
7 $94,356.46 $0.00 $94,356.46 $37,742.59 $56,613.88
8 $90,727.37 $0.00 $90,727.37 $36,290.95 $54,436.42
9 $87,237.86 $0.00 $87,237.86 $34,895.14 $52,342.71
10 $117,660.76 $0.00 $117,660.76 $47,064.30 $70,596.46
SUM DEPR
MARRr=10.00% SUM MACRS
$448,767.27
PW$C = $30,288.04 100.00%
BOOK VALUE
FW$C = $78,559.38
$0.00
AW$C = $4,929.24
IRRr = 11.65%
ERRr = 10.65% ERRr = 10.65%
IRRc = 16.12%
ERRc = 15.07%
BASIS $500,000.00 ACTUAL BTCF $124,166.67 INFL RATE= 4.00%
EST SALV $50,000.00 BTCF INCR $0.00 TAX RATE 40.00%
RCVD SALV $50,000.00 USEFUL LIFE 10
MARRr=10.00%
PERIODS 10
MARRc=14.40%
EOY ACTUAL BTCF DWO TI T ACTUAL ATCF MACRS(5)
0 -$500,000.00 -$500,000.00
1 $124,166.67 $100,000.00 $24,166.67 $9,666.67 $114,500.00 20.00%
2 $124,166.67 $160,000.00 -$35,833.33 -$14,333.33 $138,500.00 32.00%
3 $124,166.67 $96,000.00 $28,166.67 $11,266.67 $112,900.00 19.20%
4 $124,166.67 $57,600.00 $66,566.67 $26,626.67 $97,540.00 11.52%
5 $124,166.67 $57,600.00 $66,566.67 $26,626.67 $97,540.00 11.52%
6 $124,166.67 $28,800.00 $95,366.67 $38,146.67 $86,020.00 5.76%
7 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
8 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
9 $124,166.67 $0.00 $124,166.67 $49,666.67 $74,500.00
10 $174,166.67 $0.00 $174,166.67 $69,666.67 $104,500.00
SUM DEPR
MARRc=14.40%
$500,000.00
PW$T = $30,288.04
BOOK VALUE
FW$T = $116,287.07
$0.00
AW$T = $5,897.55
IRRc=16.12%
ERRc=15.07% ERRc=15.07%
IRRr=11.65%
ERRr=10.65%
BASIS $500,000.00 LOAN PRINC $300,000.00 REAL BTCF $124,166.67 TAX RATE 40.00% INFL RATE= 4.00%
EST SALV $50,000.00 LOAN PERIOD 10 BTCF INCR $0.00 USEFUL LIFE 10
MARRr=10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% METHOD 1 PERIODS 10
MARRc=14.40%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $129,133.34 $0.00 $36,000.00 $100,000.00 -$6,866.66 -$2,746.67 $95,880.00 $95,880.00 $0.00 $0.00 20.00%
2 $134,298.67 $0.00 $36,000.00 $160,000.00 -$61,701.33 -$24,680.53 $122,979.20 $122,979.20 $0.00 $0.00 32.00%
3 $139,670.62 $0.00 $36,000.00 $96,000.00 $7,670.62 $3,068.25 $100,602.37 $100,602.37 $0.00 $0.00 19.20%
4 $145,257.44 $0.00 $36,000.00 $57,600.00 $51,657.44 $20,662.98 $88,594.47 $88,594.47 $0.00 $0.00 11.52%
5 $151,067.74 $0.00 $36,000.00 $57,600.00 $57,467.74 $22,987.10 $92,080.64 $92,080.64 $0.00 $0.00 11.52%
6 $157,110.45 $0.00 $36,000.00 $28,800.00 $92,310.45 $36,924.18 $84,186.27 $84,186.27 $0.00 $0.00 5.76%
7 $163,394.87 $0.00 $36,000.00 $0.00 $127,394.87 $50,957.95 $76,436.92 $76,436.92 $0.00 $0.00
8 $169,930.66 $0.00 $36,000.00 $0.00 $133,930.66 $53,572.26 $80,358.40 $80,358.40 $0.00 $0.00
9 $176,727.89 $0.00 $36,000.00 $0.00 $140,727.89 $56,291.16 $84,436.73 $84,436.73 $0.00 $0.00
10 $257,809.22 $300,000.00 $36,000.00 $0.00 $221,809.22 $88,723.69 -$166,914.47 $0.00 $166,914.47 $1,613,044.36
SUM DEPR
MARRc=14.40%
$500,000.00
PW$T = $220,132.29
BOOK VALUE
FW$T = $845,169.87
$0.00
AW$T = $42,863.15
IRRc=47.70%
ERRc=23.21%
IRRr=42.02%
ERRr=18.48%
BASIS $500,000.00 LOAN PRINC $300,000.00 REAL BTCF $124,166.67 TAX RATE 40.00% INFL RATE= 4.00%
EST SALV $50,000.00 LOAN PERIOD 10 BTCF INCR $0.00 USEFUL LIFE 10
MARRr=10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% METHOD 1 PERIODS 10
MARRc=14.40%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $129,133.34 $0.00 $36,000.00 $100,000.00 -$6,866.66 -$2,746.67 $95,880.00 $95,880.00 $0.00 $0.00 20.00%
2 $134,298.67 $0.00 $36,000.00 $160,000.00 -$61,701.33 -$24,680.53 $122,979.20 $122,979.20 $0.00 $0.00 32.00%
3 $139,670.62 $0.00 $36,000.00 $96,000.00 $7,670.62 $3,068.25 $100,602.37 $100,602.37 $0.00 $0.00 19.20%
4 $145,257.44 $0.00 $36,000.00 $57,600.00 $51,657.44 $20,662.98 $88,594.47 $88,594.47 $0.00 $0.00 11.52%
5 $151,067.74 $0.00 $36,000.00 $57,600.00 $57,467.74 $22,987.10 $92,080.64 $92,080.64 $0.00 $0.00 11.52%
6 $157,110.45 $0.00 $36,000.00 $28,800.00 $92,310.45 $36,924.18 $84,186.27 $84,186.27 $0.00 $0.00 5.76%
7 $163,394.87 $0.00 $36,000.00 $0.00 $127,394.87 $50,957.95 $76,436.92 $76,436.92 $0.00 $0.00
8 $169,930.66 $0.00 $36,000.00 $0.00 $133,930.66 $53,572.26 $80,358.40 $80,358.40 $0.00 $0.00
9 $176,727.89 $0.00 $36,000.00 $0.00 $140,727.89 $56,291.16 $84,436.73 $84,436.73 $0.00 $0.00
10 $257,809.22 $300,000.00 $36,000.00 $0.00 $221,809.22 $88,723.69 -$166,914.47 $0.00 $166,914.47 $1,613,044.36
SUM DEPR
MARRc=14.40%
$500,000.00
PW$T = $220,132.29
BOOK VALUE
FW$T = $845,169.87
$0.00
AW$T = $42,863.15
IRRc=47.70%
ERRc=23.21%
IRRr=42.02%
ERRr=18.48%
BASIS $500,000.00 LOAN PRINC $300,000.00 REAL BTCF $124,166.67 TAX RATE 40.00% INFL RATE= 4.00%
EST SALV $50,000.00 LOAN PERIOD 10 BTCF INCR $0.00 USEFUL LIFE 10
MARRr=10.00%
MARRc=14.40%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
4 $145,257.44 $30,000.00 $25,200.00 $57,600.00 $62,457.44 $24,982.98 $65,074.47 $65,074.47 $0.00 $0.00 11.52%
5 $151,067.74 $30,000.00 $21,600.00 $57,600.00 $71,867.74 $28,747.10 $70,720.64 $70,720.64 $0.00 $0.00 11.52%
7 $163,394.87 $30,000.00 $14,400.00 $0.00 $148,994.87 $59,597.95 $59,396.92 $59,396.92 $0.00 $0.00
8 $169,930.66 $30,000.00 $10,800.00 $0.00 $159,130.66 $63,652.26 $65,478.40 $65,478.40 $0.00 $0.00
9 $176,727.89 $30,000.00 $7,200.00 $0.00 $169,527.89 $67,811.16 $71,716.73 $71,716.73 $0.00 $0.00
10 $257,809.22 $30,000.00 $3,600.00 $0.00 $254,209.22 $101,683.69 $122,525.53 $122,525.53 $0.00 $1,467,276.40
MARRc=14.40%
PW$T = $182,165.68
FW$T = $699,401.91
AW$T = $35,470.47
ERRc=22.05%
IRRr=30.13%
ERRr=17.36%
BASIS $500,000.00 LOAN PRINC $300,000.00 REAL BTCF $124,166.67 TAX RATE 40.00% INFL RATE= 4.00%
MARRr=10.00%
MARRc=14.40%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
2 $134,298.67 $19,146.68 $33,948.57 $160,000.00 -$59,649.90 -$23,859.96 $105,063.38 $105,063.38 $0.00 $0.00 32.00%
4 $145,257.44 $24,017.59 $29,077.65 $57,600.00 $58,579.79 $23,431.91 $68,730.28 $68,730.28 $0.00 $0.00 11.52%
5 $151,067.74 $26,899.71 $26,195.54 $57,600.00 $67,272.20 $26,908.88 $71,063.61 $71,063.61 $0.00 $0.00 11.52%
7 $163,394.87 $33,742.99 $19,352.26 $0.00 $144,042.61 $57,617.04 $52,682.57 $52,682.57 $0.00 $0.00
8 $169,930.66 $37,792.15 $15,303.10 $0.00 $154,627.56 $61,851.02 $54,984.39 $54,984.39 $0.00 $0.00
9 $176,727.89 $42,327.21 $10,768.04 $0.00 $165,959.85 $66,383.94 $57,248.70 $57,248.70 $0.00 $0.00
10 $257,809.22 $47,406.47 $5,688.78 $0.00 $252,120.44 $100,848.18 $103,865.79 $103,865.79 $0.00 $1,501,798.95
MARRc=14%
PW$T = $191,157.40
FW$T = $733,924.46
AW$T = $37,221.30
ERRc=22.34%
IRRr=33.25%
ERRr=17.63%
EOY $TBTLCF $TPPMT $TIPMT $TDWO $TTI $TTax $TATCF $TATCF+ $TATCF- $TATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $129,133.34 $0.00 $0.00 $100,000.00 $29,133.34 $11,653.33 $117,480.00 $117,480.00 $0.00 $0.00 20.00%
2 $134,298.67 $0.00 $0.00 $160,000.00 -$25,701.33 -$10,280.53 $144,579.20 $144,579.20 $0.00 $0.00 32.00%
3 $139,670.62 $0.00 $0.00 $96,000.00 $43,670.62 $17,468.25 $122,202.37 $122,202.37 $0.00 $0.00 19.20%
4 $145,257.44 $0.00 $0.00 $57,600.00 $87,657.44 $35,062.98 $110,194.47 $110,194.47 $0.00 $0.00 11.52%
5 $151,067.74 $0.00 $0.00 $57,600.00 $93,467.74 $37,387.10 $113,680.64 $113,680.64 $0.00 $0.00 11.52%
6 $157,110.45 $0.00 $0.00 $28,800.00 $128,310.45 $51,324.18 $105,786.27 $105,786.27 $0.00 $0.00 5.76%
7 $163,394.87 $0.00 $0.00 $0.00 $163,394.87 $65,357.95 $98,036.92 $98,036.92 $0.00 $0.00
8 $169,930.66 $0.00 $0.00 $0.00 $169,930.66 $67,972.26 $101,958.40 $101,958.40 $0.00 $0.00
9 $176,727.89 $0.00 $0.00 $0.00 $176,727.89 $70,691.16 $106,036.73 $106,036.73 $0.00 $0.00
10 $257,809.22 $300,000.00 $631,754.46 $0.00 -$373,945.24 -$149,578.10 -$524,367.15 $0.00 $524,367.15 $1,659,897.55
SUM DEPR
MARRc=14.40%
$500,000.00
PW$T = $232,335.64
BOOK VALUE
FW$T = $892,023.06
$0.00
AW$T = $45,239.33
IRRc=58.76%
ERRc=23.57%
IRRr=52.66%
ERRr=18.82%