Note: All items Must Show: Given, Required, Formulas used, and Final Solution please answer problem 11.20

11.19 An income-producing asset costs $60 000, has an estimated useful life of 7 years, has no salvage value after installation, and is expected to produce annual net savings of $15000. The company's tax rate is 52%. Compute (a) the before-tax ROR, and (b) the after-tax ROR under straight-line depreciation. Ans. (a) 16.3%; (b) 8.6% 11.20 For the situation described in Problem 11.19, compute the after-tax ROR when sum-of-years'-digits depreciation is charged. Ans. 9.7%