You are considering the purchase of a new industrial pump th…

You are considering the purchase of a new industrial pump that you will use for three years, and it will cost you $40,000 to buy.  It will be depreciated using the 3-year MACRS schedule (.33, .45, .15, .07 are the factors) and will be sold at the end of the third year for $8,000.  It will also require 3,000 each year in maintenance.  If your tax rate is 25% and your cost of capital is 10%, what is the equivalent annual payment for this machine?

OPTIONAL QUESTION FOR UP TO 3 ADDITIONAL POINTS: Using prope…

OPTIONAL QUESTION FOR UP TO 3 ADDITIONAL POINTS: Using proper grammar, spelling & oceanography terms, please compose one well-written paragraph describing the most significant concept you learned during the first half of the semester. Please explain exactly what you learned and why it was significant to you. Quality matters here if you want to earn the full 3 points. This question will be graded manually by your professor and your final score will not be available until that is completed.