X Company has purchased a Rocket for $8,000 to use in their Pokemon capturing business. The Rocket is being depreciated with a straight line depreciation schedule of four years. The market value of the rocket drops 20% every year. The rocket has an annual O&M cost which is $3,000 in year 1 and which increases by 10% every year. If the annual income tax of the company is 40% and the annual after-tax MARR of company is 9%, what is the EUAC of the rocket in its economic life?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here