What is the after-tax present worth of the equipment

Reference no: EM132139632

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%?

Reference no: EM132139632

Questions Cloud

Explain the direct impact of the oil shock : Consider that an increase in of oil prices reduces the amount of oil used in the production process and results in a negative productivity shock.

What is the probability that the person selected : What is the probability that the person selected is a female who did not attend college

Provide a summary of current technology : One mission of the hospital is to work hard in preventing health issues by using new technologies created by health conscious engineers.

Confidence interval around a mean : Make a 99% confidence interval around a mean of 22.9 with a standard deviation of 1.9, with a sample size of 18. For this confidence interval

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.

How social media can be used to make customers aware : The local Chamber of Commerce has asked you to speak at the next meeting on your business' successful social media campaign.

By how much will taxes need to be cut to bring the economy : Holding other factors constant, by how much will taxes need to be cut to bring the economy to equilibrium at potential GDP?

Describe how the market for real estate has developed : PACC6003 Assignment - Describe how the market for real estate has developed in the three cities over the past 30 years. Use a plot to illustrate your findings

Percentile rank of a student showing a raw score : a) What is the percentile rank of a student showing a raw score rating of 3.11?

User Account

All Pages