Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 50

Create an Excel spreadsheet for exercise 12-30 and demonstrate that the PV of the depreciation deductions, when the income tax rate is 40 percent, is $3,218. Given an after-tax discount rate of 12 percent, 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.