How much money needs to be set aside today to purchase a new piece of equipment in
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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 9% interest compounded annually, the marginal tax rate is 28%, and the price of the equipment is expected to increase by 3% per year. The present cost of the equipment is $75,000. What effect do taxes have on the amount of money needed?
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To calculate how much money needs to be set aside today to purchase the new piece of equipment in three years we need to consider the present cost of ...View the full answer
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Related Book For 
Construction Accounting And Financial Management
ISBN: 9780135232873
4th Edition
Authors: Steven J. Peterson
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