The purchase of a large-volume copier is being considered.
(a) Find the after-tax cash flow for year 3 for the copier using MACRS and the current tax law. The corporation's taxable income is about $5 million.
(b) Find the EAC after taxes for the copier assuming a MARR of 8% and traditional straight-line depreciation over 10 years.
(c) Find the EAC after taxes assuming MACRS depreciation and an i of 8%.