What is the annual worth of this purchase

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Reference no: EM131928055

Bocksteal construction Inc is considering the purchase of a semi-truck. Over its 5 year life, it will provide net revenues of $15000 per year at an initial cost of $65000 and a salvage value of $20000. The company pays 35% in taxes, the Capital cost allowance (CCA) rate for semi-trucks is 30% and the after tax MARR IS 12%. What is the annual worth of this purchase?

Reference no: EM131928055

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