Essay
An engineering company just bought a bending machine for $50 000. Its service life is 10 years, and afterwards its salvage value will be $2 000. Services provided by the machine are expected to bring
$10 000 in annual revenues, and operating costs are estimated at $2 000 per year. Assume that the CCA rate is equal to the depreciation rate, the after-tax interest rate is 5% and the corporate tax rate is 30%. Calculate the present worth of this investment.
Correct Answer:
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The depreciation rate is d = 1 - 
= 0.27...View Answer
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Correct Answer:
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= 0.27...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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