Question:Please answer it without using excel.
company is about to invest $5,000,000 to purchase a piece...
Question
Please answer it without using excel.
company is about to invest $5,000,000 to purchase a piece...
Please answer it without using excel.
company is about to invest $5,000,000 to purchase a piece of
equipment which will generate $750,000 of profit (before taxes and
expenses) for each of the next 10 years. At the end of each year,
operating and maintenance costs total $100,000. At the end of these
10 years, the equipment will be sold (salvaged) for $500,000. If
the company’s tax rate is 45%:
Calculate the EUAC, using an interest rate of 10% and straight
line depreciation. Be sure to state whether this represents an
annual cost or an annual profit.