A laser system costs $190,000. Its useful life is estimated to be 12 years and have a

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A laser system costs $190,000. It’s useful life is estimated to be 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income-tax rate is 25% and the after-tax MARR is 10%. Consider the scenario in which the laser is kept for 12 years.

What is the AW (annual worth) if we use double declining balance depreciation (no half-year convention, no switching) as part of the ATCF (after tax cash flow) analysis?

Posted Date: Dec 13, 2021 05:00 PM

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A laser system costs $190,000. Its useful life is estimated to be 12 years and have a

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Cost190000 Life12 years Salavage value5000 Revenue 45000 each year income tax25 discount rate10 Double declining rate 21life100 166667 Year CFBTbefore ... View the full answer

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