Building for their business operations

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Reference no: EM131073403

Mitchell and Meyer Associates bought land and a building for their business operations on January 10, 2013 for $600,000. The land was appraied at $200,000 and the building purchase price was $400,000. Three years later, the company sold both the land and building on April 10, 2015 for the original purchase price. Revenues from the business were $50,000 per year for each of the 3 years. MACRS was used to determine the depreciation. Assuming the company is in a 40% effective tax bracket, was this a good investment based on an after tax MARR of 12%.You will need the charts in the back of Engineering Economy 16th Edition.

Reference no: EM131073403

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