0

1
2
3
4
5
6
7
8
9
10
11
12
13
14

0.0714286
0.0769231
0.0833333
0.0909091
0.1
0.1111111
0.125
0.1428571
0.1666667
0.2
0.25
0.3333333
0.5
1

60000.00
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71
4285.71

SL METHOD

55714.29
51428.57
47142.86
42857.14
38571.43
34285.71
30000.00
25714.29
21428.57
17142.86
12857.14
8571.43
4285.71
0.00

0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14
0.14

8571.4286
7346.9388
6297.3761
5397.7509
4626.6437
3965.6946
3399.1668
2913.5715
2497.347
2140.5832
1834.7856
1572.6733
1348.0057
1155.4335

DB METHOD

rem amt
51428.57
44081.63
37784.26
32386.51
27759.86
23794.17
20395.00
17481.43
14984.08
12843.50
11008.71
9436.04
8088.03
6932.60

METHOD

SL
4285.71
3956.04
3673.47
3434.93
3238.65
3084.43
2974.27
2913.57
2913.57
2913.57
2913.57
2913.57
2913.57
2913.57

DB
8571.43
7346.9388
6297.3761
5397.7509
4626.6437
3965.6946
3399.1668
2913.5715
2497.347
2081.1225
1664.898
1248.6735
832.44901
416.2245

max
8571.43
7346.94
6297.38
5397.75
4626.64
3965.69
3399.17
2913.57
2913.57
2913.57
2913.57
2913.57
2913.57
2913.57

DB TO SL

rem
51428.57
44081.63
37784.26
32386.51
27759.86
23794.17
20395.00
17481.43
14567.86
11654.29
8740.71
5827.14
2913.57
0.00

0.1429
0.2449
0.1749
0.1249
0.0893
0.0892
0.0893
0.0446

D amount
8574
14694
10494
7494
5358
5352
5358
2676

GDS

BV
51426.00
36732.00
26238.00
18744.00
13386.00
8034.00
2676.00
0.00

D amount
2142.8571
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
4285.7143
2142.8571

rem amount
57857.14
53571.43
49285.71
45000.00
40714.29
36428.57
32142.86
27857.14
23571.43
19285.71
15000.00
10714.29
6428.57
2142.86
0.00
ADS

0
1
2
3
4

0.33
0.44
0.15
0.07

195000.00
64993.50
86677.50
28879.50
14449.50

Cumulative depn through the end

of year 3

180550.50

Dpen during fourth year

14449.50

BV at EOY2
MV

43329.00
40000.00
???

MV
40000.00

GDS: 5
ADS: 6
Basis = 300000

i
12%
0
1
2
3
4
5
6
7

0.2
0.32
0.192
0.1152
0.1152
0.0576

300000
60000
96000
57600
34560
34560
17280

GDS
PW

25000
50000
50000
50000
50000
50000
25000
ADS

$221,428.95
$26,871.28

$194,557.67

114500
0
1
2
3
4
5
6

0.2
0.32
0.192
0.1152
0.1152
0.0576

22900
36640
21984
13190.4
13190.4
6595.2

BV
114500
91600
54960
32976
19785.6
6595.2
0

24105.263
19030.471
15024.056
11861.097
70020.887

90394.737
71364.266
56340.21
44479.113

state + local
federal

7%
35%

eff tax rate

40%

0.3955

Basis
200,000
MV
70,000

k
0
1
2
3
3

BTCF
-200,000
-65,000
-65,000
-65,000
70,000

GDS

Dk

0.2
0.32
0.096

40,000
64,000
19,200

t
40%
MARR
12%

ATCF = Expenses - tax

BV

Taxable income

tax

160,000
96,000
76,800

-105,000
-129,000
-84,200
-6,800

-42,000
-51,600
-33,680
-2,720

ATCF
-200,000
-23,000
-13,400
-31,320
72,720
PW of costs
0.4163
(A/P, 12, 3)

EXPENSES
200,000
23,000
13,400
-41,400
$201,750.41
$83,988.70

t
36.64%
MV
280,000
time
3 years
Basis
420,000

k
0
1
2
3
last
last

BTCF
-1000000
-636,000
-674160
-714609.6
280,000
580,000

Rate
0.3333
0.4445
0.07405

land
580,000
MARR
10%
0.1481

D
0
139986
186690
31101
0

BV
420,000
280,014
93,324
62,223

Taxable income
-775,986
-860,850
-745,711
217,777
0

tax
-284321.3
-315415.4
-273228.4
79793.493
0

ATCF
-1000000
-351678.73
-358744.56
-441381.236
200206.507
580,000
NPV
0.4021
0.6336

-1000000.00
-351678.73
-358744.56
338825.27

-1361626.60238618
-547510.06
-864125.72

t
40%
MARR
12%

0
1
2
3
4
5
6

taxable income

2500
5000
5000
5000
5000
5000
2500

0
0
0
-10,000
0
0
0

-2500
-5000
-5000
-15000
-5000
-5000
-2500
0.2013

For leasing option, we can save tax on annual lease

tax
-1000
-2000
-2000
-6000
-2000
-2000
-1000

ATCF
-30000.00
1000.00
2000.00
2000.00
-4000.00
2000.00
2000.00
1000.00

PW
AW

-26030.80
-5240.00

tax on annual lease payment which is operating expense

P - 0.4P <= 5240
P <= 8733

0
1
2
3
4
5