12- (a) The BVM Corp., a construction company, purchased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 28%. Compute the after-tax rate of return for the truck. ១៩ ធ
12- (a) The BVM Corp., a construction company, purchased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the truck for $9000. The combined federal and state income tax rate for BVM is 28%. Compute the after-tax rate of return for the truck. ១៩ ធ
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please use excel to solve problem and show steps clearly
![12-
29
G
(a) The BVM Corp., a construction company, purchased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the
income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the
truck for $9000. The combined federal and state income tax rate for BVM is 28%. Compute the after-tax rate of return for the truck.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18c269e1-fa0f-4a31-a73e-ed28973503c2%2F160f42c8-8219-4dfe-a9ab-0a6e947fb343%2Fmf8ecf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12-
29
G
(a) The BVM Corp., a construction company, purchased a used hybrid electric pickup truck for $30,000 and used MACRS depreciation in the
income tax return. During the time the company had the truck, they estimated that it saved $9500 a year. At the end of 4 years, BVM sold the
truck for $9000. The combined federal and state income tax rate for BVM is 28%. Compute the after-tax rate of return for the truck.
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