a $10,000 asset -20 A company purchases an asset that costs $10,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 12% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Appendix C, Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. (b) Use the built-in NPV function in Excel to verify your answer. not book value (NBV) of $25.000, what are the after-tax proceeds for a firm th

A company purchases an asset that costs $10,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 12% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Appendix C. Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. (b) Use the built-in NPV function in Excel to verify your answer. A company purchases an asset that costs $10,000. This asset qualifies as three-year property under MACRS. The company uses an after-tax discount rate of 12% and faces a 40% income tax rate. (a) Use the appropriate present value factors found in Appendix C. Table 1, to determine the present value of the depreciation deductions for this firm over the specified four-year period. (b) Use the built-in NPV function in Excel to verify your