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A laser system costs $190,000. Its useful life is estimated to be 12 years and have a salvage value of $5,000. It will produce $45,000
A laser system costs $190,000. Its useful life is estimated to be 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income-tax rate is 25% and the after-tax MARR is 10%. Consider the scenario in which the laser is kept for 12 years.
What is the AW (annual worth) if we use double declining balance depreciation (no half-year convention, no switching) as part of the ATCF (after tax cash flow) analysis?
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