Question

Set up table and perform ATCF analysis for this truck. Calculate After Tax Present Worth. State whether this is a good investment?(From Homework 7-25 From Engr Economy, Sullivan, Pearson Publ.)

Office Supply Company purchased light duty truck for $15000 Sells truck after 2 years MACRS GDS Property Class of 5 years Market value of truck $10,000 year 2 Annual revenue = $10,000/year Annual expenses = 3000/year Effective tax rate = 27% After tax MARR = 15% Set up table and perform ATCF analysis for this truck. Calculate AfterTax Present Worth. Is this a good investment?

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