University of texas is considering purchasing a battery the


University of Texas is considering purchasing a battery. The battery costs $36, has a useful life of 3 years, and will cost $100 per year to keep changed. The battery uses straight line depreciation and the salvage value is zero at the end of year 3. The tax rate is 30% and cost of capital is 12%. What is the (after taxes) equivalent annual cost of the battery?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: University of texas is considering purchasing a battery the
Reference No:- TGS01128621

Expected delivery within 24 Hours