What is the project after-tax present value

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Reference no: EM132018593

A project requires an initial investment of $125,000 in equipment (straight-line depreciation with a 10-year depreciable life and $0 salvage value), and an extra $3,000 in labor expenses per year. At the end of 10 years, the project will be terminated. Assuming a combined (state and federal) income tax rate of 34% and after tax MARR (minimum attractive rate of return) of 10%, what is the project's after-tax present value?

Hint: you may assume a zero gross income.

Reference no: EM132018593

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