A corporation uses the following: before-tax MARR of 14% per year, after-tax MARR of 7% per year,

Question:

A corporation uses the following: before-tax MARR of 14% per year, after-tax MARR of 7% per year, and Te of 50%. Two new machines have the following estimates.

The machine is retained in use for a total of 10 years then sold for the estimated salvage value. Select one machine under the following conditions:
(a) Before-tax PW analysis.
(b) After-tax PW analysis, using classical SL depreciation over the 10-year life.
(c) After-tax PW analysis, using MACRS depreciation with a 5-year recoveryperiod.

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other... 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...