An engineer is working on the layout of a new research and experimentation facility. Two plant operators

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An engineer is working on the layout of a new research and experimentation facility. Two plant operators will be required. If, however, an. Additional $100,000 of instrumentation and remote controls were added, the plant could be run by a single operator. The total before-tax cost of each plant operator is projected to be $35,000 per year. The instrumentation and controls will be depreciated by means of the modified accelerated cost recovery system (MACRS). If this corporation (34% corporate tax rate) invests in the additional instrumentation and controls, how long will it take for the after-tax benefits to equal the $100,000 cost? In other words, what is the after tax payback period?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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