The company pays 35 in taxes the capital cost allowance


Bocksteal construction Inc is considering the purchase of a semi-truck. Over its 5 year life, it will provide net revenues of $15000 per year at an initial cost of $65000 and a salvage value of $20000. The company pays 35% in taxes, the Capital cost allowance (CCA) rate for semi-trucks is 30% and the after tax MARR IS 12%. What is the annual worth of this purchase?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The company pays 35 in taxes the capital cost allowance
Reference No:- TGS02723530

Expected delivery within 24 Hours