Define the terms atcf and eva

Assignment Help Engineering Mathematics

Reference no: EM131506380

Question: Rework Example using the MACRS depreciation method (assume three-year property class) instead of the SL depreciation method.

Example: Consider the following proposed capital investment in an engineering project and determine its

(a) year-by-year ATCF,

(b) after-tax AW,

Proposed capital investment = $84,000

Salvage value (end of year four) = $0

Annual expenses per year = $30,000

Gross revenues per year = $70,000

Depreciation method = Straight line

Useful life = four years

Effective income tax rate (t) = 50%

After-tax MARR (i) = 12% per year

Reference no: EM131506380

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