Jason discovers that he can take an investment tax credit in the current fiscal year on any capital equipment purchased for his expansion plans in Problem 5.15. The state credit is 33% for investments up to \($500,000\) (for small businesses). How much more attractive does this make the project?

Data from in problem 5.15 

Jason moves ahead with the investment in Problem 5.14, but the business turns out to be much better than expected and a competitor wants to buy Jason's system for \($50,000\) two years after he started.
How would you handle the depreciation of the system? Create at least 2 depreciation scenarios and determine the depreciation loss or recaptured depreciation that would need to be recorded if the system were sold.

Data from in problem 5.14 

Jason anticipates investing about \($75,000\) in a high-end 3-D laser cutter that he estimates will generate \($20,000\) annually for the next decade.
Expenses are reasonable and projected to be about \($6,500\) per year.
Assuming straight-line depreciation, no salvage value, and combined taxes of 40%, what is the rate of return for this project?