GarrisonManagerial AccountingIrwin McGraw-Hill
Student Resources
Chapter 15: Income Taxes in Capital Budgeting Decisions
Learning Objectives

1 Compute the after-tax cost of a tax-deductible cash expense and the after-tax benefit from a taxable cash receipt.
2 Explain how depreciation deductions are computed under the Modified Accelerated Cost Recovery System (MACRS).
3 Compute the tax savings arising from the depreciation tax shield, using both the MACRS tables and the optional straight-line method.
4 Compute the after-tax net present value of an investment proposal.


New in this Edition
  • The preference ranking material that was previously in this chapter has been moved to Chapter 14.
  • The MACRS material has been simplified by eliminating "useful life" as the determinant of an asset's property class. In the text and all problem material, an asset's MACRS property class is given.



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