Can someone please give me a hand with this value design question in MS Excel? T
ID: 2794179 • Letter: C
Question
Can someone please give me a hand with this value design question in MS Excel? Thank you very much for your time!
Youngblood Enterprises, a manufacturer of aerospace products, purchased five pumps for $850,000 each and expended $125,000 for shipping and installation. The addition of these pumps will result in an increase in revenue of $900,000, with associated increased expenses of $165,000 each year. Youngblood Enterprises effective tax rate is 39%. Youngblood Enterprises after tax MARR-11%? Period 1 Determine the GDS 2 Ik factors for pumps 3 Taxable Income (BTCFs) 4 Net Income for each year recovery 5 Net Cash Flows ATCFs 6PWOMARR%) of ATCFs-Explanation / Answer
(A) GDS Recovery Period : 7 years. As per Point 37.2 ; Manufacturer of Aerospace Products in 2016 Publication 946.
(B)
Deprecition
Rate of Return :
In $ Purchase Price 4,250,000.00 Shipping & Installation 125,000.00 Total Cost 4,375,000.00 Increase in Revenue 900,000.00 Increase in Expense 165,000.00 Tax Rate 39% MARR 11%