Cost Management: A Strategic Emphasis 7th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 30

Create an Excel spreadsheet for Brief Exercise 12-20 and demonstrate that the PV of the depreciation deductions, when the income tax rate is 40%, is $3,218. Given an after-tax discount rate of 12%, what tax rate would be needed in order for the PV of the depreciation deductions to equal $4,000 Use the Goal Seek function of Excel.