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Project cost of capital (r) 10.0% Opportunity cost $100,000 Net equipment cost (depreciable basis) $65,000 Straight-line deprec. rate for equipment 33.333% Sales revenues, each year
Project cost of capital (r) 10.0% Opportunity cost $100,000 Net equipment cost (depreciable basis) $65,000 Straight-line deprec. rate for equipment 33.333% Sales revenues, each year Salesreventes,eachyearOperatingcosts(excl.deprec.),eachyear$123,000$25,000 Tax rate 25% $26,796 $28,207 $29,691 $31,254 $32,817
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