Problem
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%?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.