The purchase of a minicomputer is being considered the, Ask an Expert

Economics

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.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638437

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