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You are considering a 5-year project, which requires 5.1 million initial investment. The book value of the equipment at the end of the project
You are considering a 5-year project, which requires 5.1 million initial investment. The book value of the equipment at the end of the project will be 1 million. You expect to sell the equipment at the end of the project at a price 1.8 million. The tax rate is 20% and the cost of capital is 16%. The free cash flow from the asset sales is closest to a. 1.64 million Ob. 1.80 million c. 1.00 million O d. 0.80 million
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
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