ENGINEERING ECONOMIC ENHANCED EBOOK
ENGINEERING ECONOMIC ENHANCED EBOOK
14th Edition
ISBN: 9780190931940
Author: NEWNAN
Publisher: OXF
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Chapter 12A, Problem 27P
To determine

To compute:The after-tax account balance after 24 years of investment.

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Juan DeBaptist purchased $10,000 in corporate stock on June 1 and sold the stock when its value reached $13,000 on October 26. Ignoring stock transaction fees, what federal taxes did Juan pay on this stock investment if his taxable income is $90,000? Assume a capital gains tax rate of 15%.
The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs $119,000 and will be depreciated at a CCA rate of 30%. Shell will lease the equipment to others and each year receive $33,100 in rent. At the end of five years, the firm will sell the equipment for $31,600. All values are presented in today's dollars. Calculate the overall present worth of these cash flows with tax effects if market interest rate is 10% and annual inflation rate is 2%. (Note: Don't use the $ sign in your answer and round it up to 2 decimal places)
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