A dynamic measurement machine used by Renshaw Instruments had a netannual cash revenue (GI - E) before taxes of $550,000 over its life of 10 years.Its first cost was $1.7 million when it was purchased 10 years ago. It wasstraight-line depreciated with n=10 years with a salvage value of $200,000. It wassold today for $200,000. The company’s Te = 36% and its after-tax MARR =15%. Was the purchase and use of the machine economically justified? Solve using Excel
A dynamic measurement machine used by Renshaw Instruments had a netannual cash revenue (GI - E) before taxes of $550,000 over its life of 10 years.Its first cost was $1.7 million when it was purchased 10 years ago. It wasstraight-line depreciated with n=10 years with a salvage value of $200,000. It wassold today for $200,000. The company’s Te = 36% and its after-tax MARR =15%. Was the purchase and use of the machine economically justified? Solve using Excel
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
Related questions
Question
A dynamic measurement machine used by Renshaw Instruments had a net
annual cash revenue (GI - E) before taxes of $550,000 over its life of 10 years.
Its first cost was $1.7 million when it was purchased 10 years ago. It was
straight-line depreciated with n=10 years with a salvage value of $200,000. It was
sold today for $200,000. The company’s Te = 36% and its after-tax MARR =
15%. Was the purchase and use of the machine economically justified?
Solve using Excel
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