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4 5 Compute the after tar salvage value of equipment (TV of asset) at the end of the project for the following You are bidding

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4 5 Compute the after tar salvage value of equipment (TV of asset) at the end of the project for the following You are bidding for a contract to sell computers to a small government agency. The contract will be for 220 computers a year for 5 years. To be able to produce these computers, you need to invest in $850 in equipment. The quipment la taxable life of 10 years and will be depreciated using straight line. At the end of the years, the equipment can be sold for S70) market or scrap value. The variable cost of producing the computers is si per unit and you will incur in a fixed cost of $240 a year You have estimated you will need $30 today in working capital The appropriate discounting rate for this type of projects is 147. The corporate tax rate applicable to you in this Case is 30 Your

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