Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 72

A corporation uses the following: before-tax MARR of 14% per year, after-tax MARR of 7% per year, and T e of 50%. Two new machines have the following estimates. The machine is retained in use for a total of 10 years, then sold for the estimated salvage value. Select one machine under the following conditions:
a) Before-tax PW analysis.
b) After-tax PW analysis, using classical SL depreciation over the 10-year life.
c) After-tax PW analysis, using MACRS depreciation with a 5-year recovery period.