Your firm is interested in purchasing a new network of computers (CCA = 15%) for $50,000 which will allow you to gain an edge over your competitors, potentially resulting in higher revenues. You estimate an increase of $800/y in your annual expenses due to costs associated with the computers' energy requirements, software subscriptions, etc., and your firm plans to sell the computers for $3,500 at the end of 12 years. Assuming the corporate tax rate and MARR of your firm is 25% and 8%, respectively, what additional annual revenue (before taxes) should you expect each year from you! new computers for this investment to break even (after taxes)? Present your final answer in annual worth.

Your firm is interested in purchasing a new network of computers (CCA = 15%) for $50,000 which will allow you to gain an edge over your competitors, potentially resulting in higher revenues. You estimate an increase of $800/y in your annual expenses due to costs associated with the computers' energy requirements, software subscriptions, etc., and your firm plans to sell the computers for $3,500 at the end of 12 years. Assuming the corporate tax rate and MARR of your firm is 25% and 8%, respectively, what additional annual revenue (before taxes) should you expect each year from you! new computers for this investment to break even (after taxes)? Present your final answer in 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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