Main Content Net Revenue Years 1 Investment You are thinking about buying a new Hot Dog cart for $7,760. Based on what the manufacturer tells you about maintenance costs and your estimate of revenues you should be able to make around $13,700 per year, for the next 7 years. Market value for the cart at that time should be about $450. According to the current asset class table the allowable depreciation rate for Hot Dog carts is 27%. If your business' tax rate is 49% and your after-tax MARR is 5%, what is the after tax annual worth of this investment? Use four decimal place accuracy for the CTF and CSF.

Main Content Net Revenue Years 1 Investment You are thinking about buying a new Hot Dog cart for $7,760. Based on what the manufacturer tells you about maintenance costs and your estimate of revenues you should be able to make around $13,700 per year, for the next 7 years. Market value for the cart at that time should be about $450. According to the current asset class table the allowable depreciation rate for Hot Dog carts is 27%. If your business' tax rate is 49% and your after-tax MARR is 5%, what is the after tax annual worth of this investment? Use four decimal place accuracy for the CTF and CSF.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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