Question 9.9: After-Tax Economic Life of an Asset Find the economic life o...

After-Tax Economic Life of an Asset

Find the economic life on an after-tax basis for the new forklift truck (challenger) described in Example 9-4. Assume that the new forklift is depreciated as a MACRS (GDS)∗ three-year property class asset, the effective income tax rate is 40%, and the after-tax MARR is 6% per year.

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