The after-tax ror under straight-line depreciation

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An income-producing asset costs $60 000, has an estimated useful-life of 7 years, has no salvage value after installation and is expected to produce annual net savings of $15 000. The company's tax rate is 52%. Compute (a) the before-tax ROR, and (b) the after- tax ROR under straight-line depreciation.

Reference no: EM13994726

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