NO EXCEL!

3. Consider a research study performed for a large retailer. The study deals with planning and implementation of improvements in product selection, ordering, transportation, distribution, placement, display, and e-marketing. The study involves a large consultancy, with much of the data gathering and analysis accomplished by two universities. The entire effort occurs during year 0 and costs $650,000. It yields an increase in before-tax revenue of $190,000 per year over 5 years, with an additional $110,000 at the end of year 5 due to sharing of results with less progressive companies that now want to learn better ways to do business themselves. Various media and sharing activities will accomplish this during year 8 . The company's after-tax MARR is 12% and its combined federal and state tax rate is 25%. What can be used for depreciation? The Internal Revenue Service requires that the following requirements be met for depreciable oroperty: It must be used in business or held for the production of income. It must have a life that can be determined, and that life must be longer than a year. It must be something that wears out, decays, gets used up, becomes obsolete, or loses value from natural causes