1) A chemical recovery system costs $30,000 and saves $5,280 each year of its life. The salvage value is estimated at $7,500. The after-tax MARR is 9%, the CCA rate is 20% and taxes are at 45%. What is the net after tax annual benefit or cost of purchasing the chemical recovery system?
2) What is the total after-tax annual cost of a machine with a first cost of $45,000 and operating and maintenance cost of $0.22 per unit produced? It will be sold for $4,500 at the end of five years. Production is 750 units per day; 250 days per year. The CCA rate is 30%, the after-tax MARR is 20%, and the corporation income tax rate is 40%.
3) Ken will receive a $5,000 annual payment from a family trust. This will continue until Ken in 30; he is now 20. Inflation averages 4% and Ken's real MARR is 8%. If the first payment is a year from now and a total of 10 payments are to be made, what is the present worth of his remaining income from the trust?