Problem
The purchase of a minicomputer is being considered. The corporation's taxable income exceeds $25 million. The first cost is $19,000, maintenance is $4500 per year, and the salvage value in year 10 is $2000.
(a) Find the after-tax cash flow for year 3 for the computer using MACRS and the current tax law.
(b) Find the EAC after taxes for the minicomputer assuming a MARR of 8% and MACRS depreciation.
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.