What is the after-tax present worth of the equipment

Reference no: EM131789601

Question: An equipment costs $800,000 and has a service-life of 10 years with a salvage value of $20,000. The equipment will bring a before tax income of $200,000 every year. Annual operations and maintenance will be $10,000. The company uses straight line depreciation method and has a MARR of 12%. What is the after-tax present worth of this equipment, if the combined tax rate of the company is 34%?

a. $46,355

b. $64,788

c. $55,325

d. $82,250

Reference no: EM131789601

Questions Cloud

Prepare a bank reconciliation : Cash balance according to the company's records at March 31, $13,065. Required - Prepare a bank reconciliation

Complete the consolidation working papers for parrot : Parrot Corporation acquired 90% of Swallow Co. on January 1, 2014. Complete the consolidation working papers for Parrot and Swallow for the year 2014.

Find the acceleration of the particle : where s is in meters and t is in seconds. Find the acceleration of the particle when t = 2.

Is it alfred or june who is more likely to end having to win : Alfred and David are rolling dice. Whoever rolls the lower number wins the bet. If both roll the same number (for example, both roll five), they try again.

What is the after-tax present worth of the equipment : An equipment costs $800,000 and has a service-life of 10 years with a salvage value of $20,000. The equipment will bring a before tax income of $200,000.

Analyze the one-year financial impact of outsourcing : If Oakland College outsources maintenance, it will be able to sell equipment for $34,300, Analyze one-year financial impact of outsourcing grounds maintenance

Object travels as a function of time : If the formula describing the distance s (in feet) an object travels as a function of time (in seconds) is s = 100 + 160t - 16t2 what is the acceleration

Instantaneous rate of change of the marginal revenue : Revenue the revenue (in dollars) from the sale of x units of a certain product can be described by

Define direct impact of the oil shock on the fe line : Oil prices have risen temporarily, due to political uncertainty in the Middle East. An advisor to the Fed suggests, "Higher oil prices reduce aggregate demand.

User Account

All Pages