Consider an eight-year project which has an initial capital expenditure of $1,000,000 (after tax calculation and non-depreciable), annual income of $300,000 beginning at the end of year 1, and annual operating costs of $80,000 beginning at the end of year 1. Assume incomes increase at the rate of 7% whereas costs increase at the rate of 5%. Also assume tax rate to be 30% of taxable income.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.