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An asset with an estimated life of 10 years and a salvage value of $5, 000 is purchased by a firm for $60, 000. The
An asset with an estimated life of 10 years and a salvage value of $5, 000 is purchased by a firm for $60, 000. The firm effective tax rate is 50% and MARR is 0%. The gross income from the asset before depreciation and taxes will be $8, 500 per year. Calculate the present worth of the taxes for the straight-line and sum-of years-digits methods of depreciation. Assume that the firm is profitable in other activities
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