nex cars for a total cost of $180,000. The cars generated expenses of $60,000 per year. The company uses MACRS depreciation and its marginal tax rate is income of $150,000 per year and incurred operating 28% (Note: Per IRS regulations, cars have a class life of 5 years). The 10 cars were sold at the end this was a good investment on an after-tax basis. Contributed by Mukasa Ssemakula, Wayne State 12-38 Fleet Fleet rental car company purchased 10. A of the third year for a total of $75,000. Assuming a MARR of 10% and using NPW, University determine

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To determine if the purchase of the 10 cars was a good investment on an aftertax basis using Net Pre... View the full answer