required to justify the project economically? Click the icon to view the information about this...

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required to justify the project economically?
Click the icon to view the information about this project.
Click the icon to view the GDS Recovery Rates (rk) for the 3-year property class.
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Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year.
The minimum amount of equivalent uniform annual revenue that is required to justify the project economically is
$ thousand. (Round to the nearest whole number.)
Capital investment is $990,000.(This includes land and working capital.)
The cost of depreciable property, which is part of the $990,000 total estimated
project cost, is $460,000.
Assume, for simplicity, that the depreciable property is in the MACRS (GDS)
three-year property class.
The analysis period is three years.
Annual operating and maintenance expenses are $607,000 in the first year, an
they increase at the rate of 6% per year (i.e.,?bar(f)=6%) thereafter.
Estimated MV of depreciable property from the project at the end of three year:
$230,000.
Federal income tax rate =21%; state income tax rate =5%.
MARR (after taxes) is 12% per year.
Use the half-year time convention for depreciation in the last year.
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