Fleet Fleet rental car co

Fleet Fleet rental car co

Fleet Fleet rental car company purchased 10 new cars for a total cost of $180,000. The cars generated income of $150,000 per year and incurred operating expenses of $60,000 per year. The company ises MACRS depreciation and its marginal tax rate is life of 5 years). The 10 cars were sold at the ending a MARR of 10% and using NPW, determine if this was a good investment on an after-tax basis.

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