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GEO Labs is evaluating the acquisition of a light truck that will increase the speed and amount of area serving. The acquisition of this light
GEO Labs is evaluating the acquisition of a light truck that will increase the speed and amount of area serving. The acquisition of this light truck at a cost of $100,000 will result in earnings before depreciation and taxes of $34,000 in years 1 to 3, and $14,500 in years 4 to 6. The company tax rate is 30% and cost of capital is 10% (REMEMBER TO USE TABLES 12-11 AND 12-12) PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES AND DON'T USE COMMA SEPARATORS HOW MUCH IS THE DEPRECIATION IN YEAR 3
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