Compute after-tax rate of return for truck

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Reference no: EM131911658

The BVM Corp., a construction company, pur- G chased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 40%. Compute the after-tax rate of return for the truck.

Reference no: EM131911658

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