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Unformatted text preview: the marketplace is 4% per year, compounded quarterly? 3. A new welding machine costs $22,000. It has a useful life of 8 year. It is expected to produce gross earnings of $6,000 each year and then have a salvage value of $4,000. Assume that the steel erector who is considering this purchase expects to pay a 40% tax rate and estimates its MARR at 8%. Is this machine worth buying? Use MACRS to calculate depreciation. When drawing a cash flow diagram, show depreciation charges in a different color or using a dashed line. Calculate the taxes you will have to pay each year. Draw a separate after-tax cash flow diagram....
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This note was uploaded on 02/27/2011 for the course CE 167 taught by Professor Horvath during the Fall '08 term at University of California, Berkeley.
- Fall '08