Question: A project using passive heating/cooling design con- cepts to reduce energy costs requires an investment of $125,000 in equipment (straight-line deprecia- tion with a

A project using passive heating/cooling design con- cepts to reduce energy costs

A project using passive heating/cooling design con- cepts to reduce energy costs requires an investment of $125,000 in equipment (straight-line deprecia- tion with a 10-year depreciable life and $0 salvage value), and $30,000 in labor (not depreciable). At- the end of 10 years, the project will be terminated. Assuming a combined tax rate of 34% and after- tax MARR of 15%, determine the project's after-tax present worth.

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