Determine the present worth of the after-tax

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Reference no: EM131810399

Vanguard Solar Systems is building a new manufacturing facility to be used for the production of solar panels. Vanguard uses a MARR of 15%, and MACRS depreciation on its assets and is in the 35% tax bracket. The building will cost $2.75 million, and the equipment (3-year property) will cost $1.55 million plus installation costs of $135,000. O&M costs are expected to be $1.3 million the first year, increasing 6% annually. If the facility opens in the month of March and sales are as shown, determine the present worth of the after-tax cash flows for the first 5 years of operation. Contributed by Paul R. McCright, University of South Florida

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Reference no: EM131810399

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