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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Related Book For
Stock Markets And Corporate Finance A Primer
ISBN: 9781800611474,9781800611498
1st Edition
Authors: Michael Dempsey
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