$55 000 and saves $17 000 per year? After-tax interest is 10 percent. Assume the device will be sold for a $1000 salvage value at the end of its six-year life. The CCA rate is 20 percent and the corporate income tax rate is 54 percent. the answer should be: 1683 (need the solution)

$55 000 and saves $17 000 per year? After-tax interest is 10 percent. Assume the device will be sold for a $1000 salvage value at the end of its six-year life. The CCA rate is 20 percent and the corporate income tax rate is 54 percent. the answer should be: 1683 (need the solution)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What is the after-tax present worth of a chip placer if it costs
$55 000 and saves $17 000 per year? After-tax interest is 10 percent. Assume the
device will be sold for a $1000 salvage value at the end of its six-year life. The
CCA rate is 20 percent and the corporate income tax rate is 54 percent.
the answer should be:
1683 (need the solution)

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