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An asset costs $825,000, will have a useful life of 10 years, and a salvage value at that time of $165,000. The before-tax net revenue
An asset costs $825,000, will have a useful life of 10 years, and a salvage value at that time of $165,000. The before-tax net revenue will be $200,000 per year. The company's after-tax MARR is 15% and its combined federal and state tax rate is 35%.
a.Find the after-tax PW, FW, AW, IRR, and ERR using SLN depreciation.
b.Find the after-tax PW, FW, AW, IRR, and ERR using the appropriate Property Class MACRS-GDS depreciation.
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