Calculate the present worth of taxes for the sl method

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A company has purchased new trailers for $150,000 and expects to realize a net $80,000 in gross income over operating expenses for each of the next 3 years. The trailers have a recovery period of 3 years. Assume an effective tax rate of 35% and an interest rate of 15% per year. Calculate the present worth of taxes for the SL method.

Reference no: EM132498165

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