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Solve problem 12.43 12-31 (a) The BVM Corp, a construction company, pur- G chased a used hybrid electric pickup truck for $30,000 and used MACRS

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image text in transcribedSolve problem 12.43
12-31 (a) The BVM Corp, a construction company, pur- G chased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 40%. Compute the corporate income tax rate, after-tax rate of return for the truck. (b) Hybrid electric vehicles (HEVs), such as the truck purchased by BVM Corp., are recognized for their fuel efficiency and earth-friendliness. However, no major technology is without neg- ative environmental impacts. Summarize the key environmental issues, such as greenhouse emissions in use, life-cycle impacts of battery sources (such as lithium-ion and nickel metal hydride), vehicle production impacts, and other life-cycle impacts. 2 A chemioul

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