Question
A company can buy a centrifugal separator for $30,000.The estimated market (salvage) value is $9,000 after a three-year useful life.Operating and maintenance costs are expected
A company can buy a centrifugal separator for $30,000.The estimated market (salvage) value is $9,000 after a three-year useful life.Operating and maintenance costs are expected to be $3,500 per year.The effective income tax rate is 30% and the after-tax MARR is 12%.
- Compute the ATCFs and the after-tax AW of the equipment if the company uses straight-line depreciation.
- Compute the ATCFs and the after-tax AW of the equipment if the company uses 200% declining balance depreciation.
- If the before-tax annual revenue is $15,000 per year, is this project profitable on an after-tax basis? Show your calculations and explain your reasoning.
no exceel, by hand step by step please
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
9781111827021
