An equipment costs 800000 and has a service-life of 10


Question: An equipment costs $800,000 and has a service-life of 10 years with a salvage value of $20,000. The equipment will bring a before tax income of $200,000 every year. Annual operations and maintenance will be $10,000. The company uses straight line depreciation method and has a MARR of 12%. What is the after-tax present worth of this equipment, if the combined tax rate of the company is 34%?

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Microeconomics: An equipment costs 800000 and has a service-life of 10
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