Effective income tax rate After-tax MARR 50% 12% Taxable Income Income Taxes EOY BTCF Depreciation, ATCF $ $ (95,000.00) $ (95,000.00) $ $ $ 137,000.00 23,750.00 -$6,625.00 13,250.00 30,375.00 $ $ $ 237,000.00 23,750.00 $ $ 13,250.00 -$6,625.00 30,375.00 $ $ $ 337,000.00 23,750.00 $ $ 25.00 13,250.00 -$6,625.0 30,375.00 $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); A/ Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "O")?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Effective income tax rate
After-tax MARR
EOY BTCF
$
ATCF
$
(95,000.00)
(95,000.00)
$
$
$
-$6,625.00,
$
30,375.00
37,000.00 23,750.00 13,250.00
$
$
$
$
237,000.00 23,750.00
$
13,250.00 -$6,625.00, 30,375.00
$
$
-$6,625.00,
$
30,375.00
13,250.00
37,000.00 23,750.00
$
$
$
$
437,000.00 23,750.00 13,250.00 -$6,625.00
30,375.00
1
3
50%
12%
Taxable Income
"Income Taxes
Depreciation,
For the given table, find the EVA in year 3 (please round the result to integer, e.g., if
the result is $5,732.07, fill in 5732);
A
A/
Should this project be invested based on the annual/present/future equivalent EVA
(fill in "1" if the answer is "yes", otherwise fill in "0")?
Transcribed Image Text:Effective income tax rate After-tax MARR EOY BTCF $ ATCF $ (95,000.00) (95,000.00) $ $ $ -$6,625.00, $ 30,375.00 37,000.00 23,750.00 13,250.00 $ $ $ $ 237,000.00 23,750.00 $ 13,250.00 -$6,625.00, 30,375.00 $ $ -$6,625.00, $ 30,375.00 13,250.00 37,000.00 23,750.00 $ $ $ $ 437,000.00 23,750.00 13,250.00 -$6,625.00 30,375.00 1 3 50% 12% Taxable Income "Income Taxes Depreciation, For the given table, find the EVA in year 3 (please round the result to integer, e.g., if the result is $5,732.07, fill in 5732); A A/ Should this project be invested based on the annual/present/future equivalent EVA (fill in "1" if the answer is "yes", otherwise fill in "0")?
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