Question: A company, whose current earnings put them in the 35% marginal tax bracket, is considering purchasing a piece of equipment for $25,000. The equipment will

A company, whose current earnings put them in the 35% marginal tax bracket, is considering purchasing a piece of equipment for $25,000. The equipment will be depreciated using the straight line method over a 4 year useful life to a salvage value of $5,000 it is estimated that equipment will increase the company's earnings by $8,000 for each of the 4 years should the equipment be purchased? Assume a MARR of 10%

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