# Round all other answers to the nearest whole dollar

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the tax rate as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) Year Depreciation on New Equipment Depreciation on Old Equipment Incremental Depreciation Tax Rate Tax Shield Benefits i. Compute the aftertax benefits of the cost savings. (Enter the aftertax factor as a decimal rounded to 2 decimal places. Round all other answers to the nearest whole dollar.) (1 - Tax Rate) Aftertax Savings 1 2 37 Savings \$ 60,000 52,000 50,000 48,000 45,000 34,000 5 i-1. Add the depreciation tax shield benefits and the aftertax cost savings to determine the total annual benefits. (Do not round intermediate calculations and round your answers to
the nearest whole dollar.) Year Tax Shield Benefits from Depreciation Aftertax Cost Savings Total Annual Benefits j-2. Compute the present value of the total annual benefits. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Present value k-1. Compare the present value of the incremental benefits (i) to the net cost of the new equipment (e). (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar.) Net present value

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• Fall '19
• Depreciation, \$144,000, \$54,000, 10 percent, \$22,800, \$ 60,000 52,000 50,000 48,000 45,000 34,000

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