Question
Your company in the USA bought a truck for $ 18,000. The truck loses $ 3,000 in sales value each year. Thanks to the truck,
Your company in the USA bought a truck for $ 18,000. The truck loses $ 3,000 in sales value each year. Thanks to the truck, the company is projected to increase annual revenue of $ 10,000 and maintenance costs of $ 3,500. The company's effective annual income tax is 40%, and its MARR after tax is 10%. If the company will use this truck for 2 years and sell it after 2 years; a) If the truck will not be depreciated, is it a good investment? b) Is this a good investment in truck straight line depreciation (5-year depreciation)? c) This truck will be depreciated with MACRS for 5 years and if the depreciation coefficients are as follows: 0,2; 0.32; 0.192; 0.1152; 0.1152; 0.0576 is this a good investment?
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