After-tax Marginal Cost of year n

The Income tax will be included.

t — Income tax rate;

dn — Amount of the asset depreciation of year n;

BVn — Book value of the asset at the end of year n

After-tax EUAC

After-tax Economic Life 

Economic life of after-tax replacement normally will be same to that of before-tax replacement.

When the income tax rate is too high, the economic life of after-tax replacement may increase one year.

After-tax Replacement Analysis

Income tax normally will affect the results of replacement analysis

After-tax Investment Value of Defender: The MV and the possible tax savings due to loss on disposal.