With respect to the AGV vehicle in problem 2 A company bought an AGV for its dis
ID: 2766264 • Letter: W
Question
With respect to the AGV vehicle in problem 2 A company bought an AGV for its distribution center 5 years ago. The cost of the AGV was $1, 200,000 and its installation cost were $300,000, and the AGV has a 5-year MACRS-GDS property class. During the 5th year the company disposes the asset with a salvage value of $150,000. The book value at end of year 4, and the MACRS-table values for years 4, 5 and 6 are shown in the table below. The company tax rate is 40%. The IJg&y;&tax; and loan cash flow for that year is 100,000. What is the ATCF value in year 5? $253,680 $219,120 $129,120 $189,560Explanation / Answer
year
BTCF
Salvage
DWO
TI
Tax
ATCF
Book Value
MACRS table
4
172,800
259,200
0.1152
5
100,000
150,000
172,800
422,800
169,120
253,680
0.1152
year
BTCF
Salvage
DWO
TI
Tax
ATCF
Book Value
MACRS table
4
172,800
259,200
0.1152
5
100,000
150,000
172,800
422,800
169,120
253,680
0.1152
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