The $500,000 investment in the surface-mount placement (SMP) machine in an electronics manufacturing plant. It produced $92,500 in net revenue (after taxes) for 10 years, plus a $50,000 salvage value at the end of the 10-year period. Now, to determine the after-tax economic worth of the investment, we will use a 25% income-tax rate and will perform an after-tax analysis using a 10% after-tax MARR.
The $500,000 investment in the surface-mount placement (SMP) machine in an electronics manufacturing plant. It produced $92,500 in net revenue (after taxes) for 10 years, plus a $50,000 salvage value at the end of the 10-year period. Now, to determine the after-tax economic worth of the investment, we will use a 25% income-tax rate and will perform an after-tax analysis using a 10% after-tax MARR.
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 5PROB
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The $500,000 investment in the surface-mount placement (SMP) machine in an electronics manufacturing plant. It produced $92,500 in net revenue (after taxes) for 10 years, plus a $50,000 salvage value at the end of the 10-year period. Now, to determine the after-tax economic worth of the investment, we will use a 25% income-tax rate and will perform an after-tax analysis using a 10% after-tax MARR.
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