A chemical company bought a small vessel for$55,000; it is
Chapter , Problem 12-42(choose chapter or problem)
A chemical company bought a small vessel for$55,000; it is to be depreciated by MACRSdepreciation. When requirements changed sud-denly, the chemical company leased the vessel toan oil company for 6 years at $10,000 per year.The lease also provided that the oil company couldbuy the vessel at the end of 6 years for $35,000.At the end of the 6 years, the oil company exer- cised its option and boughtthe vessel.The chemicalcompany has a 34% combined incremental tax rate.Compute its after-tax rate of return on the vessel
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