This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: : 1. 6.6 2. 6.7 3. 6.9 (hint: use Table 6-4 to determine the recovery period. The Recovery Period is the left hand column) 4. 6.22 [Recall that the after tax MARR = (1-tax rate)(Before tax MARR)] 5. 6.23 6. 6.36 parts a and b only (Hint: all you have here are expenses. In this case, we assume that the company will offset other unknown income with these expenses. Consequently, tax calculated on a negative cash flow each year, i.e. the expenses, is actually a reduction in effective cost of the equipment that year. Said another way, the tax calculated is a reduction in expense for the year. In the problem you are trying to minimize cost.)...
View Full Document
- Summer '05
- Income Statement, left hand column, negative cash flow, Recovery Period, tax MARR