Bulldog Shipping, Inc. has purchased new cargo containers for $500,000. MACRS with a
5- year recovery period and an estimated salvage value of $96,000 is to be used to write off the capital investment. The company expects to realize net revenue of $170,000 each year for the next 6 years. Assume an effective federal tax of 38%, state income tax of 10.5% per year, and an after- tax MARR of 13% per year. Calculate the present worth of this investment.

Question

Bulldog Shipping, Inc. has purchased new cargo containers for $500,000. MACRS with a
  5- year recovery period and an estimated salvage value of $96,000 is to be used to write off the capital investment. The company expects to realize net revenue of $170,000 each year for the next 6 years. Assume an effective federal tax of 38%, state income tax of 10.5% per year, and an after- tax MARR of 13% per year. Calculate the present worth of this investment.

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The Answer of Bulldog Shipping, Inc. has purchased new cargo containers for $500,000. MACRS with a
  5- year recovery period and an estimated salvage value of $96,000 is to be used to write off the capital investment. The company expects to realize net revenue of $170,000 each year for the next 6 years. Assume an effective federal tax of 38%, state income tax of 10.5% per year, and an after- tax MARR of 13% per year. Calculate the present worth of this investment.