the correct answer is $62,387 and it is a good investment

that isnt necessary to solve the problem. ykubjust know to use that life

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