Find the equivalent annual cost after taxes

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Reference no: EM131810835

The purchase of a large-volume copier is being considered. Use MACRS and the current tax law. The corporation's taxable income exceeds $20M. The first cost is $18,000. Maintenance cost per year is $1300 in Year-1 dollars. The salvage value after 10 years is $2000 in Year-10 dollars. Assume the real MARR is 8%, and the inflation rate is 5%. Find the equivalent annual cost after taxes. Does inflation increase or decrease the annual cost?

Reference no: EM131810835

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