A Canadian 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 were 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
A Canadian 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 were 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
Chapter1: Making Economics Decisions
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A Canadian 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 were estimated at $2,000 per year. Assume that the CCA rate is equal to the
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