Jeremy purchased an asset for $12,000 at the beginning of the year. No Section 179 expensing or bonus depreciation is claimed for this property. Assuming the asset is depreciated over three years on a straight-line basis, no averaging conventions apply, Jeremy's tax rate is 35 percent, and he uses a 6 percent discount rate, what is the after-tax cost of the asset?

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The Answer of Jeremy purchased an asset for $12,000 at the beginning of the year. No Section 179 expensing or bonus depreciation is claimed for this property. Assuming the asset is depreciated over three years on a straight-line basis, no averaging conventions apply, Jeremy's tax rate is 35 percent, and he uses a 6 percent discount rate, what is the after-tax cost of the asset?

Jeremy Purchased an Asset for $12,000 at the Beginning of the Year