Construction Accounting And Financial Management (4th Edition)
Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 15, Problem 35P

How much money needs to be set aside today to purchase a new piece of equipment in three years? The money is expected to earn 5% interest compounded annually, the marginal tax rate is 35%, and the price of the equipment is expected to increase by 2% per year. The present cost of the equipment is $100,000. What effect do taxes have on the amount of money needed?

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