The net annual value added that can be attributed to this


An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for 8 years. It is believed that $10,000 can be obtained when the machine is disposed of at the end of year eight. The net annual value added that can be attributed to this machine is constant over 8 years and amounts to $15,000. An effective income tax rate of 40% is used by the company, and the after-tax MARR equals 15% per year.

Determine the GDS depreciation amounts in years one through eight.

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Econometrics: The net annual value added that can be attributed to this
Reference No:- TGS0584008

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