Cost of capital and cost of additional equipment

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Frank Smith Plumbing Data Needed foranalysis: Project Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year -7 Year- 8 Cost of Capital (borrowing) 7.5% Cost of Truck $185,000 Cost of additional equipment attached to truck $25,000 Tax rate 25% Annual Before Tax & Depreciation Truck Project Earnings YR 1 $70,000 YR 2 $70,000 YR 3 $65,000 YR 4 $60,000 YR 5 $55,000 YR 6 $50,000 YR 7 $40,000 YR 8 $30,000 Depreciation

Reference no: EM131078246

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