Computing the after-tax rate of return

Reference no: EM132168365

Question: A firm has invested $14,000 in machinery with a 7-year useful life. The machinery will have no salvage value, as the cost to remove it will equal its scrap value. The uniform annual benefits from the machinery are $3600. For a combined 47% income tax rate, and sum-of-years'-digits depreciation, compute the after-tax rate of return.

Reference no: EM132168365

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