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<ol><li>Equipment is purchased for $155,000. It will generate revenues of $44,000 per year for the

next 12 years. Maintenance costs are expected to average $10,000 per year. Using straight-line depreciation, $0 salvage value and a total income tax rate of 34%, state here on Blackboard the after-tax rate of return (in percent to 2 decimal places, like 9.38%) for this equipment.</li></ol>

Top Answer

Prefer answer (A) because it is showing after tax... View the full answer


Page No.
Equipment call = $ 185,000
life of equipment = 12 year
( A)
Salvage value
at end of life
Method of depreciation = straight-line Mether
Annual Depreciation - equipment...

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