Determine the after-tax net present worth of the assets

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speciality machining inc bought a new multi turret turning center for $250,000. the machine generated new revenue of $80,000 per year. operating costs for the machine averaged $10,000 per year. following IRS regulations, the machine was depreciated using the MACRS method, with a recovery period of 7 years. the center was sold for $75,000 after 5 years of service. the company uses an after-tax MARR rate of 12% and is in the 35% tax bracket. determine the after-tax net present worth of this asset over the 5-year service period.

Reference no: EM13239714

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