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A Construction Company Has an Effective Income Tax Rate of 38

Question 21

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A construction company has an effective income tax rate of 38%. The company must purchase one of the following two models of tower cranes for its new project. The
after- tax MARR is 12% per year. Select a crane on the basis of present worth of the EVA estimates using MACRS with a 5- year recovery period. A construction company has an effective income tax rate of 38%. The company must purchase one of the following two models of tower cranes for its new project. The after- tax MARR is 12% per year. Select a crane on the basis of present worth of the EVA estimates using MACRS with a 5- year recovery period.

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PWQ 12%) = $24,745.8...

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