The state tax Patrick must pay on the initial profit is The federal tax he must pay on the initial profit is
The inflation on the amount remaining after taxes is
As a result, the real value of Patrick's profit in whole
dollars is

The answers are:
$346.25
$1,731.25
$145.43
$4,702

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.