Solve 2.37

36 A company has purchased a piece of equipment for $300,000. Tax codes indicate that the service life of this piece of equipment is 8 years with a salvage value of $50,000 at the end of the service life. Determine the depreciation amount allowed for this equipment in each of the years 1-8 using SYD deprecation 2.37 The initial cost of a machine for a production facility is $225,000. The machine is expected to last for 10 years with no salvage value. The company's tax rate is 49% and SLD is used to depreciate the machine. For this type of depreciation, the tax life of the machine is considered 8 years and its salvage value is $5,000. The after-tax rate of return is 143%. Determine the uniform annual before tax cash flow. 2.38 An empirical expression that is sometimes used to estimate the base cost of a shell and tube heat exchanger is (Corripio, Chrien, and Evans 1982), CH exp 8.202 +0.1506 n A +0.06811(1n A)