PROJECT ACCOUNTING II ◆ Net profit (aka profit After Taxes or pat) PAT=(1-Trate)(PBT-Depreciation where Trate= corporate income tax rate(48%) ◆ Depreciation Allowance for the depreciation of the fixed investment (equipment wears out, etc. Depreciation=/Fixed Investment //Nd "Straight line” where Nd= depreciation period 10/1899 Engineering economics ll10/18/99 Engineering Economics II 5 PROJECT ACCOUNTING II t Net Profit (aka Profit After Taxes or PAT) PAT = (1 - Trate) (PBT - Depreciation) where Trate = corporate income tax rate (~ 48%) t Depreciation Allowance for the depreciation of the fixed investment (equipment wears out, etc. Depreciation = [Fixed Investment]/Nd “Straight line” where Nd = depreciation period