Find the after-tax cash flow

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Reference no: EM132168002

Question: The purchase of a minicomputer is being considered. The corporation's taxable income exceeds $25 million. The first cost is $19,000, maintenance is $4500 per year, and the salvage value in year 10 is $2000.

(a) Find the after-tax cash flow for year 3 for the computer using MACRS and the current tax law.

(b) Find the EAC after taxes for the minicomputer assuming a MARR of 8% and MACRS depreciation.

Reference no: EM132168002

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