Bocksteal construction inc is considering the purchase of a, Ask an Expert

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Bocksteal construction Inc is considering the purchase of a semi-truck. Over its 5 year life, it will provide net revenues of $15000 per year at an initial cost of $65000 and a salvage value of $20000. The company pays 35% in taxes, the Capital cost allowance (CCA) rate for semi-trucks is 30% and the after tax MARR IS 12%. What is the annual worth of this purchase?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92766714

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