Use straight-line (SL) depreciation, an effective income tax rate of 40% and an after-tax MARR of 12% to determine the present worth of the investment.
| No Comments The Municipal Refuse Collection Vehicle (MRCV) has an initial purchase price of P84,000 and an estimated useful life of 6 years. During this period, the Salvage Value (SV) and Book Value (BV) are both assumed to be zero at the end of the asset’s useful life. Each year, before-tax cash flow is expected to be +P18,000 for a total of +P108,000 over […]