Question
. HaulCo is considering the purchase of a truck. Over its five year life, it will provide net revenues of $17,000 per year at an
. HaulCo is considering the purchase of a truck. Over its five year life, it will provide net revenues of $17,000 per year at an initial cost of $72,000 and a salvage value of $21,000. HaulCo pays 35% in taxes, the CCA rate for trucks is 30%, and the after tax MARR is 12%.
(a) What is the after tax annual cost or worth of this purchase?
(b) Should HaulCo pursue this project? Why or why not?
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Microeconomics
Authors: Paul Krugman, Robin Wells
5th edition
1319098780, 1319098789, 978-1319098780
