PPT Slide

Time Line: After-Tax-Cost of Owning

(In Thousands)

0 1 2 3 4

Cost -1,000

Dep. tax sav. 132 180 60 28

Maint. -12 -12 -12 -12

Res. val. 60

NCF -1,012 120 168 48 88

PV cost of owning @ 6% = -639,267.

Year 1 depr.= 0.33(1,000,000)(0.4);

Year 1 maintenance = 20,000(0.6).

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