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oine tax rate. 12-31 (a) The BVM Corp.. a construction company, pur- a G chased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company nt ad the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 40%. Compute the after-tax rate of return for the truck. (b) Hybrid electric vehicles (HEVs), such as the truck purchased by BVM Corp., are recognized for their fuel efficiency and earth-friendliness. However, no major technology is without neg- ative environmental impacts. Summarize the key environmental issues, such as greenhouse emissions in use, life-cycle impacts of battery sources (such as lithium-ion and nickel metal tree voisle rodtion inpacts,and o her life-cycle impacts. 12-32 A chemical company bought a small vessel for A $550,000; it is to be depreciated by MACRS sud- denly, the chemical company leased the vessel to an oil company for 6 years at $100,000 per year The lease also provided that the oil company could buy the vessel at the end of 6 years for $350,000. At the end of the 6 years, the oil company exer- depreciation. When requirements changed cised its option and bought the vessel. The chemical company has a 34% combined incremental tax rate. Compute its after-tax rate of return on the vessel 2-33 Xon, a small oil equipment company, purchased