Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 82

Four years ago a division of Harcourt-Banks purchased an asset that was depreciated by the MACRS method using a 3-year recovery period. The total revenue for year 2 was $48 million, depreciation was $8.2 million, and operating expenses were $28 million. Use a federal tax rate of 35% and a state tax rate of 6.5% to determine
a) CFAT, b) percentage of total revenue expended on taxes, and c) net profit after taxes for the year.