Development equipment is being purchased for asphalt testing

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Reference no: EM131545803

Research and development equipment is being purchased for asphalt testing. It will result in profits of $60,000 per year. The equipment will cost $140,000, and will be depreciated using MACRS with GDS. Determine the after-tax cash flows over six years, and calculate the after-tax Present Worth of the asset (from its purchase cost and increased profits) using a tax rate of 28% and a MARR of 10%.

Reference no: EM131545803

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