The company Orbison provides for the technological needs of offices The company has capital equipment that costs

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The company Orbison provides for the technological needs of offices The company has capital equipment that costs $300,000 today. It has a salvage value of $0 at the end of 5 years. The company applies a straight line depreciation over 5 years and it is anticipated that the equipment can be is sold for $175,000 at the end of 5 years. The corporate tax rate is 30%. If Roy applies a discount rate of 15%, he determines the present value (approximately) of the cash inflow from the sale as

a. $60,900

b. $104,216

c. $165,500

d. $515,200

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