A corporate expects to receive $34,442 each year for 15 years if a particular project is undertaken. There will be an initial investment of $114,290. The expenses associated with the project are expected to be $7,570 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A corporate expects to receive $34,442 each year for 15 years if a particular project is undertaken.
There will be an initial investment of $114,290. The expenses associated with the project are
expected to be $7,570 per year. Assume straight-line depreciation, a 15-year useful life, and no
salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine
the project's after-tax net present worth.
Enter your answer as follow: 123456.78
Transcribed Image Text:A corporate expects to receive $34,442 each year for 15 years if a particular project is undertaken. There will be an initial investment of $114,290. The expenses associated with the project are expected to be $7,570 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth. Enter your answer as follow: 123456.78
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