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7. After-tax CF from Salvage: Continuing with the example in #4, if at the end of the useful life of the equipment, the company can
7. After-tax CF from Salvage: Continuing with the example in \#4, if at the end of the useful life of the equipment, the company can sell it for a salvage value of $3,000, what is the after-tax cash flow from salvage in the terminal year? (Remember that the tax rate is 31% ). 8. Terminal year CF's: Continuing with the example in \#4, what is the total year 6 cash flow resulting from this project (equipment purchase)? 9. Payback period: Using the data from problems 4 through 8, calculate the payback period for this equipment. 10. Discounted payback period: Using the data from problems 4 through 8 , calculate the discounted payback period, based on 9% required rate 11. NPV: Using the data from problems 4 through 8, calculate the NPV using a 9% required rate of return (WACC) 12. IRR: Using the data from problems 4 through 8 , calculate the IRR of this project
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