Adco industries makes heavy machinery and they have a specialized soldering machine. This machine requires annual maintenance, for which they pay $5000 a year. The original cost of the machine was $150,000. It is expected that the soldering machine will last 16 years, and will have a salvage value of $11,000. Adco pays taxes at a rate of 40% and expects an after-tax return of 8% on investments. What is the after tax annul cost if the soldering machine? The CCA rate for this type of equipment is 20 percent. (Hint: Find CTF and CSF, then the annual worth).

Adco industries makes heavy machinery and they have a specialized soldering machine. This machine requires annual maintenance, for which they pay $5000 a year. The original cost of the machine was $150,000. It is expected that the soldering machine will last 16 years, and will have a salvage value of $11,000. Adco pays taxes at a rate of 40% and expects an after-tax return of 8% on investments. What is the after tax annul cost if the soldering machine? The CCA rate for this type of equipment is 20 percent. (Hint: Find CTF and CSF, then the annual worth).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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