Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-1.

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Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-1 The 200% DB Method with Switchover to the SL Method (Example 7-2)

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-2 MACRS Class Lives and Recovery Periods a

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-2 (continued) MACRS Class Lives and Recovery Periodsa

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-3 GDS Recovery Rates (r k ) for the Six Personal Property Classes

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-3 GDS (continued) Recovery Rates (r k ) for the Six Personal Property Classes

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-1 Flow Diagram for Computing Depreciation Deductions under MACRS

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-4 MACRS (GDS) Property Classes and Primary Methods for Calculating Depreciation Deductions

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-4 (continued) MACRS (GDS) Property Classes and Primary Methods for Calculating Depreciation Deductions

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-2 GDS Recovery Rate for 5-year Recovery Period Spreadsheet

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-3 BV Comparisons for Selected Methods of Depreciation in Example 7-7 (Note: The bus is assumed to be sold in year six for the MACRS-GDS method.)

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-5 Corporate Federal Income Tax Rates (2006)

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-4 The Federal Income Tax Rates for Corporations (Table 7-5) with Incremental Income Tax for a Proposed Project (assumes, in this case, corporate taxable income without project > $18,333,333)

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-5 General Format (Worksheet) for After-Tax Analysis; Determining the ATCF

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-6 ATCF Analysis of Example 7-15

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-6 Spreadsheet Solution, Example 7-15

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-7 ATCF Analysis of Example 7-16 [Reworked Example 7-15 with Machinery in the 10-Year MACRS (GDS) Property Class]

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-8 After-Tax Analysis of Example 7-18

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-9 After-Tax Analysis of Purchase Alternative (Example 7-19)

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 7-7 Summary of Example 7-19

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-10 After-Tax Analysis of Design S1, Example 7-20

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 7-11 After-Tax Analysis of Design S2, Example 7-20

Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE P7-39 Table for Problem 7-39

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