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PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment....

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Accounting

PLEASE USE EXCEL AND SHOW FORMULAS Six years ago, a company purchased $30,000 of equipment. The equipment has just been sold for $5000. The equipment was depreciated using 50% bonus depreciation / 50% MACRS (using a 5-year recovery period). The actual savings due to the purchase of the equipment is shown below. The firm's MARR is 12% and it's tax rate is 25%. What is the after-tax present worth of the investment?

Year 1 2 3 4 5 6
Savings 5000 6000 7000 7000 4000 3000

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