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A taxi company buys two new taxis at the beginning of every year. It.pdf

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A taxi company buys two new taxis at the beginning of every year. It keeps its taxis until they are worn out and have negligible value. Each taxi costs $20 000. The company is taxed at 50%, and the taxis depreciate at 40% per year. The company's after-tax MARR is 20%. What is the equivalent uniform annual cost to them of buying the taxis? Final answer: $30,400. Please show solution.

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A taxi company buys two new taxis at the beginning of every year. It keeps its taxis until they are worn out and have negligible value. Each taxi costs $20 000. The company is taxed at 50%, and the taxis depreciate at 40% per year. The company's after-tax MARR is 20%. What is the equivalent uniform annual cost to them of buying the taxis? Final answer: $30,400. Please show solution

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