Automatic inspection equipment purchased for $78,000 by Stimson Engineering generated an average of $26,080 annually in before-tax

Question:

Automatic inspection equipment purchased for $78,000 by Stimson Engineering generated an average of $26,080 annually in before-tax cash flow during its 5-year estimated life. This represents a return of 20%. However, the corporate tax expert said the CFAT was only $15,000 per year. If the corporation wants to realize an after-tax return of 10% per year, for how many more years must the equipment remain in service?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...