A machine was purchased for CAD 200,000, and can be sold for CAD 20,000 after 10...

A machine was purchased for CAD 200,000, and can be sold for CAD 20,000 after 10 years of service life. The machine will generate an annual revenue of CAD 80,000 and an annual operating cost of CAD 20,000. The company pays taxes at a rate of 20% and the before-tax MARR is 10%. Given a 30% CCA rate for the machine, what is the after-tax present worth of this machine over the 10-year service period? (assume books-open case).

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Rahul Sunny answered 2 years ago

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