Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 63

For each funding option, perform a spreadsheet analysis that shows the total CFAT and its present worth over a 6-year period, the time it will take to realize the full advantage of MACRS depreciation. An after-tax return of 10% is expected. Which funding option is best for Pro-Fence (Hint: For the spreadsheet, sample column headings are: Year, GI - OE, Loan interest, Loan principal, Equity investment, Depreciation rate, Depreciation, Book value, TI, Taxes, and CFAT.)