Consider the proposed capital investment in an engineering project. • Proposed capital investment: $105,000 • Salvage value (end of year four): 0 • Annual expenses per year: $20,000 Gross revenues per year: S55,000 Depreciation method: GDS • Property Class year. 3 • Effective income tax rate (t): 35% • After-tax MARR (i): 10% • The study period is 4 years. determine a) After-tax AW b) annual equivalent EVAF

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the proposed capital investment in an engineering project.
• Proposed capital investment: $105,000
• Salvage value (end of year four): 0
• Annual expenses per year. $20,000
• Gross revenues per year: $55,000
• Depreciation method: GDS
• Property Class year. 3
• Effective income tax rate (t): 35%
• After-tax MARR (i): 10%
• The study period is 4 years.
determine
a) After-tax AW
b) annual equivalent EVAF
Transcribed Image Text:Consider the proposed capital investment in an engineering project. • Proposed capital investment: $105,000 • Salvage value (end of year four): 0 • Annual expenses per year. $20,000 • Gross revenues per year: $55,000 • Depreciation method: GDS • Property Class year. 3 • Effective income tax rate (t): 35% • After-tax MARR (i): 10% • The study period is 4 years. determine a) After-tax AW b) annual equivalent EVAF
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