PROBLEM 9.58
BASIS $58,500.00 LOAN PRINC $40,000.00 BTCF ########## TAX RATE 40.00% BASIS $87,500.00 LOAN PRINC $40,000.00 BTCF ########## TAX RATE 40.00%
EST SALV $0.00 LOAN PERIOD 4 USE LIFE 9
MARRAT = 10.00% EST SALV $0.00 LOAN PERIOD 4 USE LIFE 9 MARRAT = 10.00%
RCVD SALV $0.00 LOAN INT 17.00% PERIODS 9 RCVD SALV $0.00 LOAN INT 17.00% PERIODS 9
a MACRS(5) LOAN PLAN 1
EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(5) EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(5)
0 -$58,500.00 -$40,000.00 -$18,500.00 0 -$87,500.00 -$40,000.00 -$47,500.00
1########## $0.00 $6,800.00 $11,700.00 ########## ######### -$89,400.00 20.00% 1 ########## $0.00 $6,800.00 $17,500.00 ########## ######### -$72,080.00 20.00%
2########## $0.00 $6,800.00 $18,720.00 ########## ######### -$86,592.00 32.00% 2 ########## $0.00 $6,800.00 $28,000.00 ########## ######### -$70,600.00 32.00%
3########## $0.00 $6,800.00 $11,232.00 ########## ######### -$89,587.20 19.20% 3 ########## $0.00 $6,800.00 $16,800.00 ########## ######### -$75,080.00 19.20%
4########## $40,000.00 $6,800.00 $6,739.20 ########## ######### -$131,384.32 11.52% 4 ########## $40,000.00 $6,800.00 $10,080.00 ########## ######### -$117,768.00 11.52%
5########## $6,739.20 ########## ######### -$87,304.32 11.52% 5 ########## $10,080.00 ########## ######### -$70,968.00 11.52%
6########## $3,369.60 ########## ######### -$88,652.16 5.76% 6 ########## $5,040.00 ########## ######### -$72,984.00 5.76%
7########## $0.00 ########## ######### -$90,000.00 7 ########## $0.00 ########## ######### -$75,000.00
8########## $0.00 ########## ######### -$90,000.00 8 ########## $0.00 ########## ######### -$75,000.00
9########## $0.00 ########## ######### -$90,000.00 9 ########## $0.00 ########## ######### -$75,000.00
SUM DEPR
MARRAT = 10% SUM DEPR MARRAT = 10%
$58,500.00
PWAT = -$558,971.44 $87,500.00 PWAT = -$498,765.57
BOOK VALUE
FWAT = -$1,318,025.41 BOOK VALUE FWAT = -$1,176,063.12
$0.00
AWAT = -$97,060.10 $0.00 AWAT = -$86,605.92
SELECT THE VIRTUAL MOLD APPARATUS COSTING $87,500.
b SLN
EOY BTCF PPMT IPMT DWO TI T ATCF EOY BTCF PPMT IPMT DWO TI T ATCF
0 -$58,500.00 -$40,000.00 -$18,500.00 0 -$87,500.00 -$40,000.00 -$47,500.00
1########## $0.00 $6,800.00 $6,500.00 ########## ######### -$91,480.00 1 ########## $0.00 $6,800.00 $9,722.22 ########## ######### -$75,191.11
2########## $0.00 $6,800.00 $6,500.00 ########## ######### -$91,480.00 2 ########## $0.00 $6,800.00 $9,722.22 ########## ######### -$75,191.11
3########## $0.00 $6,800.00 $6,500.00 ########## ######### -$91,480.00 3 ########## $0.00 $6,800.00 $9,722.22 ########## ######### -$75,191.11
4########## $40,000.00 $6,800.00 $6,500.00 ########## ######### -$131,480.00 4 ########## $40,000.00 $6,800.00 $9,722.22 ########## ######### -$115,191.11
5########## $6,500.00 ########## ######### -$87,400.00 5 ########## $9,722.22 ########## ######### -$71,111.11
6########## $6,500.00 ########## ######### -$87,400.00 6 ########## $9,722.22 ########## ######### -$71,111.11
7########## $6,500.00 ########## ######### -$87,400.00 7 ########## $9,722.22 ########## ######### -$71,111.11
8########## $6,500.00 ########## ######### -$87,400.00 8 ########## $9,722.22 ########## ######### -$71,111.11
9########## $6,500.00 ########## ######### -$87,400.00 9 ########## $9,722.22 ########## ######### -$71,111.11
SUM DEPR
MARRAT = 10% SUM DEPR MARRAT = 10%
$58,500.00
PWAT = -$562,092.27 $87,500.00 PWAT = -$497,284.17
BOOK VALUE
FWAT = -$1,325,384.17 BOOK VALUE FWAT = -$1,172,570.06
$0.00
AWAT = -$97,602.00 $0.00 AWAT = -$86,348.69
SELECT THE VIRTUAL MOLD APPARATUS COSTING $87,500.
PROBLEM 9.59
PORTABLE CONCRETE TEST INSTRUMENT AUTOMATED CONCRETE TEST INSTRUMENT
BASIS $22,000.00 LOAN PRINC $11,000.00 BTCF -$9,500.00 TAX RATE 40.00% BASIS $29,000.00 LOAN PRINC $11,000.00 BTCF -$7,500.00 TAX RATE 40.00%
EST SALV $2,000.00 LOAN PERIOD 6 USE LIFE 6
MARRAT = 12.00% EST SALV $3,000.00 LOAN PERIOD 6 USE LIFE 6 MARRAT = 12.00%
RCVD SALV $2,000.00 LOAN INT 18.00% PERIODS 6 RCVD SALV $3,000.00 LOAN INT 18.00% PERIODS 6
MACRS(5) LOAN PLAN 3 MACRS(5) LOAN PLAN 3
EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(5) EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(5)
0 –$22,000.00 -$11,000.00 -$11,000.00 0 –$29,000.00 -$14,500.00 -$29,000.00
1 -$9,500.00 $1,165.01 $1,980.00 $4,400.00 -$15,880.00 -$6,352.00 -$6,293.01 20.00% 1 -$7,500.00 $1,165.01 $1,980.00 $5,800.00 -$13,300.00 -$5,320.00 -$2,180.00 20.00%
2 -$9,500.00 $1,374.71 $1,770.30 $7,040.00 -$18,310.30 -$7,324.12 -$5,320.89 32.00% 2 -$7,500.00 $1,374.71 $1,770.30 $9,280.00 -$16,780.00 -$6,712.00 -$788.00 32.00%
3 -$9,500.00 $1,622.16 $1,522.85 $4,224.00 -$15,246.85 -$6,098.74 -$6,546.27 19.20% 3 -$7,500.00 $1,622.16 $1,522.85 $5,568.00 –$13,068.00 -$5,227.20 -$2,272.80 19.20%
4 -$9,500.00 $1,914.15 $1,230.86 $2,534.40 -$13,265.26 -$5,306.10 -$7,338.91 11.52% 4 -$7,500.00 $1,914.15 $1,230.86 $3,340.80 –$10,840.80 -$4,336.32 -$3,163.68 11.52%
5 -$9,500.00 $2,258.70 $886.31 $2,534.40 -$12,920.71 -$5,168.29 -$7,476.73 11.52% 5 -$7,500.00 $2,258.70 $886.31 $3,340.80 -$10,840.80 -$4,336.32 –$3,163.68 11.52%
6 -$7,500.00 $2,665.26 $479.75 $1,267.20 -$9,246.95 -$3,698.78 -$6,946.23 5.76% 6 -$4,500.00 $2,665.26 $479.75 $1,670.40 -$6,170.40 -$2,468.16 -$2,031.84 5.76%
SUM DEPR
MARRAT = 12% SUM DEPR MARRAT = 12%
$22,000.00
PWAT = -$37,945.73 $29,000.00 PWAT = -$38,027.48
BOOK VALUE
FWAT = -$74,898.14 BOOK VALUE FWAT = -$75,059.50
$0.00
AWAT = -$9,229.38 $0.00 AWAT = -$9,249.26
THE PORTABLE CONCRETE TEST INSTRUMENT COSTING $22,000 IS MARGINALLY MORE DESIRABLE IN TERMS OF AW. NOTE: THIS IS THE OPPOSITE OF THE RESULT IN PROBLEM 37.
PROBLEM 9.60
a BASIS $70,000.00 LOAN PRINC $14,000.00 BTCF -$18,000.00 TAX RATE 40.00% BASIS $110,000.00
LOAN PRINC
$14,000.00 BTCF -$14,000.00 TAX RATE 40.00%
EST SALV $3,000.00
LOAN PERIOD
3 USE LIFE 16
MARRAT = 9.00% EST SALV $4,000.00
LOAN PERIOD
3 USE LIFE 16
MARRAT = 9.00%
RCVD SALV $3,000.00 LOAN INT 10.00% PERIODS 16 RCVD SALV $4,000.00 LOAN INT 10.00% PERIODS 16
MACRS(10) LOAN PLAN 4 MACRS(5) LOAN PLAN 4
EOY BTCF PPMT IPMT DW O TI T ATCF MACRS(10) EOY BTCF PPMT IPMT DW O TI T ATCF MACRS(5)
0 -$70,000.00 -$14,000.00 -$56,000.00 0 -$110,000.00 -$14,000.00 -$96,000.00
1 -$18,000.00 $0.00 $0.00 $7,000.00 -$25,000.00 -$10,000.00 -$8,000.00 10.00% 1 -$14,000.00 $0.00 $0.00 $22,000.00 -$36,000.00 -$14,400.00 $400.00 20.00%
2 -$18,000.00 $0.00 $0.00 $12,600.00 -$30,600.00 -$12,240.00 -$5,760.00 18.00% 2 -$14,000.00 $0.00 $0.00 $35,200.00 -$49,200.00 -$19,680.00 $5,680.00 32.00%
3 -$18,000.00 $14,000.00 $4,634.00 $10,080.00 -$32,714.00 -$13,085.60 -$23,548.40 14.40% 3 -$14,000.00 $14,000.00 $4,634.00 $21,120.00 -$39,754.00 -$15,901.60 -$16,732.40 19.20%
4 -$18,000.00 $8,064.00 -$26,064.00 -$10,425.60 -$7,574.40 11.52% 4 -$14,000.00 $12,672.00 -$26,672.00 -$10,668.80 -$3,331.20 11.52%
5 -$18,000.00 $6,454.00 -$24,454.00 -$9,781.60 -$8,218.40 9.22% 5 -$14,000.00 $12,672.00 -$26,672.00 -$10,668.80 -$3,331.20 11.52%
6 -$18,000.00 $5,159.00 -$23,159.00 -$9,263.60 -$8,736.40 7.37% 6 -$14,000.00 $6,336.00 -$20,336.00 -$8,134.40 -$5,865.60 5.76%
7 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 7 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
8 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 8 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
9 -$18,000.00 $4,592.00 -$22,592.00 -$9,036.80 -$8,963.20 6.56% 9 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
10 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 10 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
11 -$18,000.00 $2,296.00 -$20,296.00 -$8,118.40 -$9,881.60 3.28% 11 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
12 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 12 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
13 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 13 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
14 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 14 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
15 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 15 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
16 -$15,000.00 $0.00 -$15,000.00 -$6,000.00 -$9,000.00 16 -$10,000.00 $0.00 -$10,000.00 -$4,000.00 -$6,000.00
SUM DEPR
MARRAT = 9% SUM DEPR MARRAT = 9%
$70,000.00
PWAT = -$139,262.07 $110,000.00 PWAT = -$143,334.48
BOOK VALUE
FWAT = -$552,913.00 BOOK VALUE FWAT = -$569,081.71
$0.00
AWAT = -$16,753.21 $0.00 AWAT = -$17,243.12
SELECT INVESTMENT A COSTING $70,000.
b BASIS $104,498.15 GOAL SEEK CHANGED CELL LOAN PRINC $14,000.00 BTCF -$14,000.00
TAX RATE
40.00%
EST SALV $4,000.00 LOAN PERIOD 3 USE LIFE 16
MARRAT = 9.00%
RCVD SALV $4,000.00 LOAN INT 10.00% PERIODS 16
MACRS(5) LOAN PLAN 4
EOY BTCF PPMT IPMT DW O TI T ATCF MACRS(5)
0 -$104,498.15 -$14,000.00 -$90,498.15
1 -$14,000.00 $0.00 $0.00 $20,899.63 -$34,899.63 -$13,959.85 -$40.15 20.00%
2 -$14,000.00 $0.00 $0.00 $33,439.41 -$47,439.41 -$18,975.76 $4,975.76 32.00%
3 -$14,000.00 $14,000.00 $4,634.00 $20,063.64 -$38,697.64 -$15,479.06 -$17,154.94 19.20%
4 -$14,000.00 $12,038.19 -$26,038.19 -$10,415.27 -$3,584.73 11.52%
5 -$14,000.00 $12,038.19 -$26,038.19 -$10,415.27 -$3,584.73 11.52%
6 -$14,000.00 $6,019.09 -$20,019.09 -$8,007.64 -$5,992.36 5.76%
7 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
8 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
9 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
10 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
11 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
12 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
13 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
14 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
15 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
16 -$10,000.00 $0.00 -$10,000.00 -$4,000.00 -$6,000.00
SUM DEPR
MARRAT = 9%
$104,498.15
PWAT = -$139,575.42
BOOK VALUE
FWAT = -$554,157.10
$0.00
AWAT = -$16,790.91 GOAL SEEK SET CELL
THE COST OF INVESTMENT B MUST BE $104,498.15 FOR THE TWO TO BE EQUIVALENT.
PROBLEM 9.61
a BASIS $70,000.00 LOAN PRINC $14,000.00 BTCF -$18,000.00 TAX RATE 40.00% BASIS $110,000.00 LOAN PRINC $14,000.00 BTCF -$14,000.00 TAX RATE 40.00%
EST SALV $3,000.00 LOAN PERIOD 3 USE LIFE 16
MARRAT = 9.00% EST SALV $4,000.00 LOAN PERIOD 3 USE LIFE 16 MARRAT = 9.00%
RCVD SALV $3,000.00 LOAN INT 10.00% PERIODS 16 RCVD SALV $4,000.00 LOAN INT 10.00% PERIODS 16
MACRS(10) LOAN PLAN 2 MACRS(10) LOAN PLAN 2
EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(10) EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(10)
0 -$70,000.00 -$14,000.00 -$70,000.00 0 -$110,000.00 -$14,000.00 -$96,000.00
1 -$18,000.00 $4,666.67 $1,400.00 $7,000.00 -$25,000.00 -$10,000.00 -$8,000.00 10.00% 1 -$14,000.00 $4,666.67 $1,400.00 $11,000.00 -$26,400.00 -$10,560.00 -$9,506.67 10.00%
2 -$18,000.00 $4,666.67 $933.33 $12,600.00 -$30,600.00 -$12,240.00 -$5,760.00 18.00% 2 -$14,000.00 $4,666.67 $933.33 $19,800.00 -$34,733.33 -$13,893.33 -$5,706.67 18.00%
3 -$18,000.00 $4,666.67 $466.67 $10,080.00 -$28,080.00 -$11,232.00 -$6,768.00 14.40% 3 -$14,000.00 $4,666.67 $466.67 $15,840.00 -$30,306.67 -$12,122.67 -$7,010.67 14.40%
4 -$18,000.00 $8,064.00 -$26,064.00 -$10,425.60 -$7,574.40 11.52% 4 -$14,000.00 $12,672.00 -$26,672.00 -$10,668.80 -$3,331.20 11.52%
5 -$18,000.00 $6,454.00 -$24,454.00 -$9,781.60 -$8,218.40 9.22% 5 -$14,000.00 $10,142.00 -$24,142.00 -$9,656.80 -$4,343.20 9.22%
6 -$18,000.00 $5,159.00 -$23,159.00 -$9,263.60 -$8,736.40 7.37% 6 -$14,000.00 $8,107.00 -$22,107.00 -$8,842.80 -$5,157.20 7.37%
7 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 7 -$14,000.00 $7,205.00 -$21,205.00 -$8,482.00 -$5,518.00 6.55%
8 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 8 -$14,000.00 $7,205.00 -$21,205.00 -$8,482.00 -$5,518.00 6.55%
9 -$18,000.00 $4,592.00 -$22,592.00 -$9,036.80 -$8,963.20 6.56% 9 -$14,000.00 $7,216.00 -$21,216.00 -$8,486.40 -$5,513.60 6.56%
10 -$18,000.00 $4,585.00 -$22,585.00 -$9,034.00 -$8,966.00 6.55% 10 -$14,000.00 $7,205.00 -$21,205.00 -$8,482.00 -$5,518.00 6.55%
11 -$18,000.00 $2,296.00 -$20,296.00 -$8,118.40 -$9,881.60 3.28% 11 -$14,000.00 $3,608.00 -$17,608.00 -$7,043.20 -$6,956.80 3.28%
12 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 12 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
13 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 13 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
14 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 14 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
15 -$18,000.00 $0.00 -$18,000.00 -$7,200.00 -$10,800.00 15 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
16 -$15,000.00 $0.00 -$15,000.00 -$6,000.00 -$9,000.00 16 -$10,000.00 $0.00 -$10,000.00 -$4,000.00 -$6,000.00
SUM DEPR
MARRAT = 9% SUM DEPR MARRAT = 9%
$70,000.00
PWAT = -$140,304.52 $110,000.00 PWAT = -$148,606.88
BOOK VALUE
FWAT = -$557,051.86 BOOK VALUE FW AT = -$590,014.76
$0.00
AWAT = -$16,878.62 $0.00 AWAT = -$17,877.39
SELECT THE CONVEYOR COSTING $70,000.
b
BASIS $98,600.63 GOAL SEEK CHANGED CELL
LOAN PRINC
$14,000.00 BTCF -$14,000.00
TAX RATE
40.00%
EST SALV $4,000.00
LOAN PERIO
3 USE LIFE 16
MARRAT = 9.00%
RCVD SALV $4,000.00 LOAN INT 10.00% PERIODS 16
MACRS(10) LOAN PLAN 2
EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(10)
0 -$98,600.63 -$14,000.00 -$84,600.63
1 -$14,000.00 $4,666.67 $1,400.00 $9,860.06 -$25,260.06 -$10,104.03 -$9,962.64 10.00%
2 -$14,000.00 $4,666.67 $933.33 $17,748.11 -$32,681.45 -$13,072.58 -$6,527.42 18.00%
3 -$14,000.00 $4,666.67 $466.67 $14,198.49 -$28,665.16 -$11,466.06 -$7,667.27 14.40%
4 -$14,000.00 $11,358.79 -$25,358.79 -$10,143.52 -$3,856.48 11.52%
5 -$14,000.00 $9,090.98 -$23,090.98 -$9,236.39 -$4,763.61 9.22%
6 -$14,000.00 $7,266.87 -$21,266.87 -$8,506.75 -$5,493.25 7.37%
7 -$14,000.00 $6,458.34 -$20,458.34 -$8,183.34 -$5,816.66 6.55%
8 -$14,000.00 $6,458.34 -$20,458.34 -$8,183.34 -$5,816.66 6.55%
9 -$14,000.00 $6,468.20 -$20,468.20 -$8,187.28 -$5,812.72 6.56%
10 -$14,000.00 $6,458.34 -$20,458.34 -$8,183.34 -$5,816.66 6.55%
11 -$14,000.00 $3,234.10 -$17,234.10 -$6,893.64 -$7,106.36 3.28%
12 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
13 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
14 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
15 -$14,000.00 $0.00 -$14,000.00 -$5,600.00 -$8,400.00
16 -$10,000.00 $0.00 -$10,000.00 -$4,000.00 -$6,000.00
SUM DEPR
MARRAT = 9%
$98,600.63
PWAT = -$140,304.51
BOOK VALUE
FWAT = -$557,051.83
$0.00
AWAT = -$16,878.62
GOAL SEEK SET CELL
THE COST OF THE SECOND CONVEYOR MUST BE $98,600.63 FOR THE TWO TO BE EQUIVALENT.
PROBLEM 9.62
EOY END-OF-YEAR LOAN PRINC $12,000.00
BTCF
BEFORE-TAX CASH FLOW
LOAN PERIOD 10
DWO DEPRECIATION WRITE-OFF (MACRS-GDS DEDUCTION) LOAN INT 2.00%
TI TAXABLE INCOME
T TAX itr = 40%
ATCF AFTER-TAX CASH FLOW
MARRAT = 15%
MACRS-GDS 7-YEAR PROPERTY CLASS
LOAN PLAN 4
EOY BTCF PPMT IPMT DWO TI T ATCF MACRS(7)
0 -$30,000.00 -$12,000.00 -$18,000.00
1 $15,000.00 $0.00 $0.00 $4,287.00 $10,713.00 $4,285.20 $10,714.80 14.290
2 $15,000.00 $0.00 $0.00 $7,347.00 $7,653.00 $3,061.20 $11,938.80 24.490
3 $15,000.00 $0.00 $0.00 $5,247.00 $9,753.00 $3,901.20 $11,098.80 17.490
4 $15,000.00 $0.00 $0.00 $3,747.00 $11,253.00 $4,501.20 $10,498.80 12.490
5 $15,000.00 $0.00 $0.00 $2,679.00 $12,321.00 $4,928.40 $10,071.60 8.930
6 $15,000.00 $0.00 $0.00 $2,676.00 $12,324.00 $4,929.60 $10,070.40 8.920
7 $15,000.00 $0.00 $0.00 $2,679.00 $12,321.00 $4,928.40 $10,071.60 8.930
8 $15,000.00 $0.00 $0.00 $1,338.00 $13,662.00 $5,464.80 $9,535.20 4.460
9 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
10 $15,000.00 $12,000.00 $2,627.93 $0.00 $12,372.07 $4,948.83 -$4,576.76 0.000
11 $15,000.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
B5 = $0.00 PWAT = $33,271.01 =NPV(I8,I14:I24)+I13
LOAN PERIOD 10
METHODS IMPROVEMENT STUDY LOAN INT 2.00%
LOAN PLAN 4
EOY BTCF PPMT IPMT DWO TI T ATCF
0 -$19,431.19 -$7,772.48 –$11,658.72
1 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
2 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
3 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
4 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
5 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
6 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
7 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
8 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
9 $15,000.00 $0.00 $0.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
10 $15,000.00 $7,772.48 $1,702.13 $0.00 $13,297.87 $5,319.15 $206.25 0.000
11 $15,000.00 $0.00 $15,000.00 $6,000.00 $9,000.00 0.000
PROBLEM 9.63
a COST BASIS $100,000.00 $150,000.00 LOAN PRINC $40,000.00
PLANNING HORIZON 6 6 LOAN PERIOD 6
USEFUL LIFE 6 8 LOAN INT 2.00%
SALVAGE VALUE $11,764.90 $39,321.60
ANNUAL OPERATING COSTS $2,500.00 $0.00
ATMARR 15%
TAX RATE 40%
ATERNATIVE A LOAN PLAN 1
B6 = $0.00 PW = -$54,128.01
LOAN PRINC $60,000.00
LOAN PERIOD 6
LOAN INT 2.00%
ATERNATIVE B LOAN PLAN 1
EOY BTCF(B) PPMT IPMT DWO(B) TI(B) T(B) ATCF(B) MACRS(5)
0 -$150,000.00 -$60,000.00 -$90,000
1 $0.00 $0.00 $1,200.00 $30,000 -$31,200 -$12,480 $11,280 20.00
2 $0.00 $0.00 $1,200.00 $48,000 -$49,200 -$19,680 $18,480 32.00
3 $0.00 $0.00 $1,200.00 $28,800 -$30,000 -$12,000 $10,800 19.20
4 $0.00 $0.00 $1,200.00 $17,280 -$18,480 -$7,392 $6,192 11.52
5 $0.00 $0.00 $1,200.00 $17,280 -$18,480 -$7,392 $6,192 11.52
B6 = $0.00 PW = -$67,054.70
ALTERNATIVE A IS BEST
b COST BASIS $100,000.00 $150,000.00 LOAN PRINC $40,000.00
PLANNING HORIZON 8 8 LOAN PERIOD 8
USEFUL LIFE 6 8 LOAN INT 2.00%
SALVAGE VALUE (6) $11,764.90 $25,165.82
SALVAGE VALUE (2) $49,000.00
ANNUAL OPERATING COSTS $2,500.00 $0.00
ATERNATIVE A LOAN PLAN 1
2 -$2,500.00 $0.00 $800.00 $32,000 -$35,300 -$14,120 $10,820 32.00
3 -$2,500.00 $0.00 $800.00 $19,200 -$22,500 -$9,000 $5,700 19.20
4 -$2,500.00 $0.00 $800.00 $11,520 -$14,820 -$5,928 $2,628 11.52
8 $46,500.00 $40,000.00 $800.00 $16,000 -$33,500 -$13,400 $19,100
B6 = $0.00 PW = -$54,267.59
B8 = $64,000 EUAC = $12,093.54
LOAN PLAN 1 LOAN INT 2.00%
EOY BTCF(B) PPMT IPMT DWO(B) TI(B) T(B) ATCF(B) MACRS(5)
0 -$150,000.00 -$60,000.00 -$90,000
1 $0.00 $0.00 $1,200.00 $30,000 -$31,200 -$12,480 $11,280 20.00
2 $0.00 $0.00 $1,200.00 $48,000 -$49,200 -$19,680 $18,480 32.00
3 $0.00 $0.00 $1,200.00 $28,800 -$30,000 -$12,000 $10,800 19.20
4 $0.00 $0.00 $1,200.00 $17,280 -$18,480 -$7,392 $6,192 11.52
5 $0.00 $0.00 $1,200.00 $17,280 -$18,480 -$7,392 $6,192 11.52
6 $0.00 $0.00 $1,200.00 $8,640 -$9,840 -$3,936 $2,736 5.76
7 $0.00 $0.00 $1,200.00 $0 -$1,200 -$480 -$720
8 $25,165.82 $60,000.00 $1,200.00 $0 $23,966 $9,586 -$45,621
B6 = $0.00 PW = -$66,499.03
EUAC = $14,819.31
ALTERNATIVE A IS STILL BEST
NOTE: WITH ALTERNATIVE A, BECAUSE THE REPLACEMENT OF THE EQUIPMENT IS SOLD AFTER 2 YEARS AND
BEFORE IT IS FULLY DEPRECIATED, ONLY A ONE-HALF YEAR DEPRECIATION IN THE YEAR OF DISPOSAL IS
ALLOWED. HENCE, THE DEPRECIATION DEDUCTION FOR ALTERNATIVE A IN YEAR 8 IS ONE-HALF WHAT WOULD
NORMALLY OCCUR. HENCE, THE BOOK VALUE AT THE END OF YEAR 8 IS EQUAL TO THE PRODUCT OF THE COST
BASIS AND ONE MINUS THE SUM OF THE ONE AND ONE-HALF YEARS TAKEN IN YEARS 7 AND 8: $100,000(1-0.20-
0.16) = $64,000.00.
PROBLEM 9.64
a BUY BUILDING MACRS(39)
BASIS $240,000.00 BTCF -$130,000.00 TAX RATE 40.00%
EST SALV $0.00 USE LIFE 39
MARRAT = 12.00%
RCVD SALV $120,000.00 PERIODS 10
EOY BTCF DWO TI T ATCF MACRS(39)
0 -$240,000.00 -$240,000.00
1 -$130,000.00 $5,906.40 -$135,906.40 -$54,362.56 -$75,637.44 2.461%
2 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
3 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
4 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
5 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
6 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
7 -$130,000.00 $6,153.60 -$136,153.60 -$54,461.44 -$75,538.56 2.564%
COST/BEG OF YR $15,000.00 BTCF -$134,000.00 TAX RATE 40.00%
MARRAT = 12.00%
BONUS@END $0.00 PERIODS 10
MARRAT = 12.00%
4 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
5 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
6 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
7 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
8 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
9 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
10 -$158,764.29 -$158,764.29 -$63,505.71 -$95,258.57
MARRAT = 12%
PWAT = -$511,232.18
FWAT = -$1,587,809.55
AWAT = -$90,480.00 GOAL SEEK SET CELL
CONTRACT PRICE IS $158,764.29 FOR EQUIVALENCE BETWEEN CONTRACTING AND LEASING.
PROBLEM 9.65
a NEW TECHNOLOGY MACRS(7)
BASIS $2,500,000.00 BTCF -$110,000.00 TAX RATE 40.00%
EST SALV $0.00 USEFUL 8
MARRAT = 10.00%
RCVD SALV $300,000.00 PERIODS 8
EOY BTCF DWO TI T ATCF MACRS(7)
0 -$2,500,000.00 -$2,500,000.00
1 -$110,000.00 $357,250.00 -$467,250.00 -$186,900.00 $76,900.00 14.29%
2 -$110,000.00 $612,250.00 -$722,250.00 -$288,900.00 $178,900.00 24.49%
3 -$110,000.00 $437,250.00 -$547,250.00 -$218,900.00 $108,900.00 17.49%
4 -$110,000.00 $312,250.00 -$422,250.00 -$168,900.00 $58,900.00 12.49%
5 -$110,000.00 $223,250.00 -$333,250.00 -$133,300.00 $23,300.00 8.93%
6 -$110,000.00 $223,000.00 -$333,000.00 -$133,200.00 $23,200.00 8.92%
7 -$110,000.00 $223,250.00 -$333,250.00 -$133,300.00 $23,300.00 8.93%
8 $190,000.00 $111,500.00 $78,500.00 $31,400.00 $158,600.00 4.46%
SUM DEPR
MARRAT = 10%
$2,500,000.00
PWAT = -$2,046,684.08
BOOK VALUE
FWAT = -$4,387,249.09
$0.00
AWAT = -$383,638.69
b MANUAL MIXING
COST $0.00 BTCF -$600,000.00 TAX RATE 40.00%
MARRAT = 10.00%
BONUS@END $0.00 PERIODS 8
EOY BTCF TI T ATCF
0 $0.00 $0.00 $0.00 $0.00
1 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
2 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
3 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
4 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
5 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
6 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
7 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
8 -$600,000.00 -$600,000.00 -$240,000.00 -$360,000.00
MARRAT = 10%
PWAT = -$1,920,573.43
FWAT = -$4,116,919.72
AWAT = -$360,000.00
c NEW TECHNOLOGY MACRS(7)
BASIS $2,317,306.09 GOAL SEEK CHANGED CELL BTCF -$110,000.00 TAX RATE 40.00%
EST SALV $0.00 USEFUL 8
MARRAT = 10.00%
RCVD SALV $300,000.00 PERIODS 8
EOY BTCF DWO TI T ATCF MACRS(7)
0 -$2,317,306.09 -$2,317,306.09
1 -$110,000.00 $331,143.04 -$441,143.04 -$176,457.22 $66,457.22 14.29%
2 -$110,000.00 $567,508.26 -$677,508.26 -$271,003.30 $161,003.30 24.49%
3 -$110,000.00 $405,296.83 -$515,296.83 -$206,118.73 $96,118.73 17.49%
4 -$110,000.00 $289,431.53 -$399,431.53 -$159,772.61 $49,772.61 12.49%
5 -$110,000.00 $206,935.43 -$316,935.43 -$126,774.17 $16,774.17 8.93%
6 -$110,000.00 $206,703.70 -$316,703.70 -$126,681.48 $16,681.48 8.92%
7 -$110,000.00 $0.00 -$110,000.00 -$44,000.00 -$66,000.00 8.93%
8 $190,000.00 $0.00 -$120,287.29 -$48,114.91 $238,114.91 4.46%
SUM DEPR
MARRAT = 10%
$2,007,018.80
PWAT = -$1,920,573.43
BOOK VALUE
FWAT = -$4,116,919.72
$310,287.29
AWAT = -$360,000.00 GOAL SEEK SET CELL
AN INVESTMENT OF $2,317,306.09 WOULD MAKE THE TWO ALTERNATIVES EQUIVALENT.
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%
133.33% 20.00% 14.29% 10.00% 5.00% 3.750%
244.45% 32.00% 24.49% 18.00% 9.50% 7.219%
314.81% 19.20% 17.49% 14.40% 8.55% 6.677%
47.41% 11.52% 12.49% 11.52% 7.70% 6.177%
511.52% 8.93% 9.22% 6.93% 5.713%
65.76% 8.92% 7.37% 6.23% 5.285%
78.93% 6.55% 5.90% 4.888%
84.46% 6.55% 5.90% 4.522%
96.56% 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 $1,400,000.00 BTCF $400,000.00 TAX RATE 40.00%
EST SALV $200,000.00 USEFUL LIFE 8
MARRAT = 10.00%
RCVD SALV $200,000.00 PERIODS 8
EOY BTCF DWO TI T ATCF
0 -$1,400,000.00 -$1,400,000.00
1$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
2$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
3$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
4$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
5$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
6$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
7$400,000.00 $150,000.00 $250,000.00 $100,000.00 $300,000.00
8$600,000.00 $150,000.00 $250,000.00 $100,000.00 $500,000.00
SUM DEPR
MARRAT = 10%
$1,200,000.00
PWAT = $293,779.34
BOOK VALUE
FWAT = $629,742.10
AWAT = $55,067.18
BASIS $1,400,000.00 BTCF $400,000.00 TAX RATE 40.00%
EST SALV $200,000.00 USEFUL LIFE 8
MARRAT = 10.00%
RCVD SALV $200,000.00 PERIODS 8
EOY BTCF DWO TI T ATCF MACRS(5)
0 -$1,400,000.00 -$1,400,000.00
1$400,000.00 $280,000.00 $120,000.00 $48,000.00 $352,000.00 20.00%
2$400,000.00 $448,000.00 -$48,000.00 -$19,200.00 $419,200.00 32.00%
3$400,000.00 $268,800.00 $131,200.00 $52,480.00 $347,520.00 19.20%
4$400,000.00 $161,280.00 $238,720.00 $95,488.00 $304,512.00 11.52%
5$400,000.00 $161,280.00 $238,720.00 $95,488.00 $304,512.00 11.52%
6$400,000.00 $80,640.00 $319,360.00 $127,744.00 $272,256.00 5.76%
7$400,000.00 $0.00 $400,000.00 $160,000.00 $240,000.00
8$600,000.00 $0.00 $600,000.00 $240,000.00 $360,000.00
SUM DEPR
MARRAT = 10%
$1,400,000.00
PWAT = $369,389.01
BOOK VALUE
FWAT = $791,818.14
$0.00
AWAT = $69,239.76
IRRAT = 17.34%
ERRAT = 13.27%
BASIS $1,400,000.00 BTCF $400,000.00 TAX RATE 40.00%
EST SALV $200,000.00 USEFUL LIFE 8
MARRAT = 10.00%
RCVD SALV $200,000.00 PERIODS 8
EOY BTCF DWO TI T ATCF
0 -$1,400,000.00 -$1,400,000.00
1$400,000.00 $350,000.00 $50,000.00 $20,000.00 $380,000.00
2$400,000.00 $262,500.00 $137,500.00 $55,000.00 $345,000.00
3$400,000.00 $196,875.00 $203,125.00 $81,250.00 $318,750.00
4$400,000.00 $147,656.25 $252,343.75 $100,937.50 $299,062.50
5$400,000.00 $110,742.19 $289,257.81 $115,703.13 $284,296.88
6$400,000.00 $83,056.64 $316,943.36 $126,777.34 $273,222.66
7$400,000.00 $49,169.92 $350,830.08 $140,332.03 $259,667.97
8$600,000.00 $0.00 $400,000.00 $160,000.00 $440,000.00
SUM DEPR
MARRAT = 10%
$1,200,000.00
PWAT = $343,590.85
BOOK VALUE
FWAT = $736,517.50
$200,000.00
AWAT = $64,404.05
IRRAT = 16.61%
ERRAT = 13.06%
COST $400,000.00 BTCF $85,000.00 TAX RATE 40.00%
MARRAT = 10.00%
BONUS@END $30,000.00 PERIODS 8
EOY BTCF TI T ATCF
0 -$400,000.00 -$400,000.00 -$160,000.00 -$240,000.00
1$85,000.00 $85,000.00 $34,000.00 $51,000.00
2$85,000.00 $85,000.00 $34,000.00 $51,000.00
3$85,000.00 $85,000.00 $34,000.00 $51,000.00
4$85,000.00 $85,000.00 $34,000.00 $51,000.00
5$85,000.00 $85,000.00 $34,000.00 $51,000.00
6$85,000.00 $85,000.00 $34,000.00 $51,000.00
7$85,000.00 $85,000.00 $34,000.00 $51,000.00
8$115,000.00 $115,000.00 $46,000.00 $69,000.00
MARRAT = 10%
PWAT = $40,478.37
FWAT = $86,768.98
AWAT = $7,587.43
IRRAT = 14.35%
ERRAT = 12.16%
COST/BEG OF YR $4,000.00 BTCF $15,000.00 TAX RATE 40.00%
MARRAT = 9.00%
BONUS@END $0.00 PERIODS 5
EOY BTCF TI T ATCF
0 -$4,000.00 -$4,000.00 -$1,600.00 -$2,400.00
1$11,000.00 $11,000.00 $4,400.00 $6,600.00
2$11,000.00 $11,000.00 $4,400.00 $6,600.00
3$11,000.00 $11,000.00 $4,400.00 $6,600.00
4$11,000.00 $11,000.00 $4,400.00 $6,600.00
5$15,000.00 $15,000.00 $6,000.00 $9,000.00
MARRAT = 9%
PWAT = $24,831.53
FWAT = $38,206.39
AWAT = $6,384.00
IRRAT = 275.00%
ERRAT = 77.17%
BASIS $500,000.00 LOAN PRINC $300,000.00 BTCF $124,166.67 TAX RATE 40.00%
EST SALV $50,000.00 LOAN PERIOD 10 USEFUL LIFE 10
MARRAT 10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% PERIODS 10 METHOD 1
EOY BT&LCF PPMT IPMT DWO TI T ATCF ATCF+ ATCF– ATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $124,166.67 $0.00 $36,000.00 $100,000.00 -$11,833.33 -$4,733.33 $92,900.00 $92,900.00 $0.00 $0.00 20.00%
2 $124,166.67 $0.00 $36,000.00 $160,000.00 -$71,833.33 -$28,733.33 $116,900.00 $116,900.00 $0.00 $0.00 32.00%
3 $124,166.67 $0.00 $36,000.00 $96,000.00 -$7,833.33 -$3,133.33 $91,300.00 $91,300.00 $0.00 $0.00 19.20%
4 $124,166.67 $0.00 $36,000.00 $57,600.00 $30,566.67 $12,226.67 $75,940.00 $75,940.00 $0.00 $0.00 11.52%
5 $124,166.67 $0.00 $36,000.00 $57,600.00 $30,566.67 $12,226.67 $75,940.00 $75,940.00 $0.00 $0.00 11.52%
6 $124,166.67 $0.00 $36,000.00 $28,800.00 $59,366.67 $23,746.67 $64,420.00 $64,420.00 $0.00 $0.00 5.76%
7 $124,166.67 $0.00 $36,000.00 $0.00 $88,166.67 $35,266.67 $52,900.00 $52,900.00 $0.00 $0.00
8 $124,166.67 $0.00 $36,000.00 $0.00 $88,166.67 $35,266.67 $52,900.00 $52,900.00 $0.00 $0.00
9 $124,166.67 $0.00 $36,000.00 $0.00 $88,166.67 $35,266.67 $52,900.00 $52,900.00 $0.00 $0.00
10 $174,166.67 $300,000.00 $36,000.00 $0.00 $138,166.67 $55,266.67 -$217,100.00 $0.00 $217,100.00 $974,217.47
SUM DEPR
MARRAT = 10%
$500,000.00
PWAT = $175,603.01
BOOK VALUE
FWAT = $455,468.98
$0.00
AWAT = $28,578.58
IRRAT = 41.54%
ERRAT = 17.16%
BASIS $500,000.00 LOAN PRINC $300,000.00 BTCF $124,166.67 TAX RATE 40.00%
EST SALV $50,000.00 LOAN PERIOD 10 USEFUL LIFE 10
MARRAT 10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% PERIODS 10 METHOD 2
EOY BT&LCF PPMT IPMT DWO TI T ATCF ATCF+ ATCF- ATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $124,166.67 $30,000.00 $36,000.00 $100,000.00 -$11,833.33 -$4,733.33 $62,900.00 $62,900.00 $0.00 $0.00 20.00%
2 $124,166.67 $30,000.00 $32,400.00 $160,000.00 -$68,233.33 -$27,293.33 $89,060.00 $89,060.00 $0.00 $0.00 32.00%
3 $124,166.67 $30,000.00 $28,800.00 $96,000.00 -$633.33 -$253.33 $65,620.00 $65,620.00 $0.00 $0.00 19.20%
4 $124,166.67 $30,000.00 $25,200.00 $57,600.00 $41,366.67 $16,546.67 $52,420.00 $52,420.00 $0.00 $0.00 11.52%
5 $124,166.67 $30,000.00 $21,600.00 $57,600.00 $44,966.67 $17,986.67 $54,580.00 $54,580.00 $0.00 $0.00 11.52%
6 $124,166.67 $30,000.00 $18,000.00 $28,800.00 $77,366.67 $30,946.67 $45,220.00 $45,220.00 $0.00 $0.00 5.76%
7 $124,166.67 $30,000.00 $14,400.00 $0.00 $109,766.67 $43,906.67 $35,860.00 $35,860.00 $0.00 $0.00
8 $124,166.67 $30,000.00 $10,800.00 $0.00 $113,366.67 $45,346.67 $38,020.00 $38,020.00 $0.00 $0.00
9 $124,166.67 $30,000.00 $7,200.00 $0.00 $116,966.67 $46,786.67 $40,180.00 $40,180.00 $0.00 $0.00
10 $174,166.67 $30,000.00 $3,600.00 $0.00 $170,566.67 $68,226.67 $72,340.00 $72,340.00 $0.00 $924,343.10
SUM DEPR
MARRAT = 10%
$500,000.00
PWAT = $156,374.28
BOOK VALUE
FWAT = $405,594.61
$0.00
AWAT = $25,449.19
IRRAT = 28.51%
ERRAT = 16.54%
BASIS $500,000.00 LOAN PRINC $300,000.00 BTCF $124,166.67 TAX RATE 40.00%
EST SALV $50,000.00 LOAN PERIOD 10 USEFUL LIFE 10
MARRAT 10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% PERIODS 10 METHOD 3
EOY BT&LCF PPMT IPMT DWO TI T ATCF ATCF+ ATCF- ATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $124,166.67 $17,095.25 $36,000.00 $100,000.00 -$11,833.33 -$4,733.33 $75,804.75 $75,804.75 $0.00 $0.00 20.00%
2 $124,166.67 $19,146.68 $33,948.57 $160,000.00 -$69,781.90 -$27,912.76 $98,984.18 $98,984.18 $0.00 $0.00 32.00%
3 $124,166.67 $21,444.28 $31,650.97 $96,000.00 -$3,484.30 -$1,393.72 $72,465.14 $72,465.14 $0.00 $0.00 19.20%
4 $124,166.67 $24,017.59 $29,077.65 $57,600.00 $37,489.02 $14,995.61 $56,075.81 $56,075.81 $0.00 $0.00 11.52%
5 $124,166.67 $26,899.71 $26,195.54 $57,600.00 $40,371.13 $16,148.45 $54,922.97 $54,922.97 $0.00 $0.00 11.52%
6 $124,166.67 $30,127.67 $22,967.58 $28,800.00 $72,399.09 $28,959.64 $42,111.78 $42,111.78 $0.00 $0.00 5.76%
7 $124,166.67 $33,742.99 $19,352.26 $0.00 $104,814.41 $41,925.76 $29,145.66 $29,145.66 $0.00 $0.00
8 $124,166.67 $37,792.15 $15,303.10 $0.00 $108,863.57 $43,545.43 $27,525.99 $27,525.99 $0.00 $0.00
9 $124,166.67 $42,327.21 $10,768.04 $0.00 $113,398.63 $45,359.45 $25,711.97 $25,711.97 $0.00 $0.00
10 $174,166.67 $47,406.47 $5,688.78 $0.00 $168,477.89 $67,391.16 $53,680.26 $53,680.26 $0.00 $935,653.41
SUM DEPR
MARRAT = 10%
$500,000.00
PWAT = $160,734.89
BOOK VALUE
FWAT = $416,904.92
$0.00
AWAT = $26,158.86
IRRAT = 31.65%
ERRAT = 16.68%
BASIS $500,000.00 LOAN PRINC $300,000.00 BTCF $124,166.67 TAX RATE 40.00%
EST SALV $50,000.00 LOAN PERIOD 10 USEFUL LIFE 10
MARRAT 10.00%
RCVD SALV $50,000.00 LOAN INT 12.00% PERIODS 10 METHOD 4
EOY BT&LCF PPMT IPMT DWO TI T ATCF ATCF+ ATCF- ATCF MACRS(5)
0 -$500,000.00 -$300,000.00 -$200,000.00 $0.00 $200,000.00 -$200,000.00
1 $124,166.67 $0.00 $0.00 $100,000.00 $24,166.67 $9,666.67 $114,500.00 $114,500.00 $0.00 $0.00 20.00%
2 $124,166.67 $0.00 $0.00 $160,000.00 -$35,833.33 -$14,333.33 $138,500.00 $138,500.00 $0.00 $0.00 32.00%
3 $124,166.67 $0.00 $0.00 $96,000.00 $28,166.67 $11,266.67 $112,900.00 $112,900.00 $0.00 $0.00 19.20%
4 $124,166.67 $0.00 $0.00 $57,600.00 $66,566.67 $26,626.67 $97,540.00 $97,540.00 $0.00 $0.00 11.52%
5 $124,166.67 $0.00 $0.00 $57,600.00 $66,566.67 $26,626.67 $97,540.00 $97,540.00 $0.00 $0.00 11.52%
6 $124,166.67 $0.00 $0.00 $28,800.00 $95,366.67 $38,146.67 $86,020.00 $86,020.00 $0.00 $0.00 5.76%
7 $124,166.67 $0.00 $0.00 $0.00 $124,166.67 $49,666.67 $74,500.00 $74,500.00 $0.00 $0.00
8 $124,166.67 $0.00 $0.00 $0.00 $124,166.67 $49,666.67 $74,500.00 $74,500.00 $0.00 $0.00
9 $124,166.67 $0.00 $0.00 $0.00 $124,166.67 $49,666.67 $74,500.00 $74,500.00 $0.00 $0.00
10 $174,166.67 $300,000.00 $631,754.46 $0.00 -$457,587.79 -$183,035.12 -$574,552.68 $0.00 $574,552.68 $939,413.16
SUM DEPR
MARRAT = 10%
$500,000.00
PWAT = $162,184.44
BOOK VALUE
FWAT = $420,664.67
$0.00
AWAT = $26,394.77
IRRAT = 53.49%
ERRAT = 16.73%