Question
A company has purchased a machine (CCA rate 27%) at $114,000 and has a tax rate of 39.00%. By how much will the NPV change
A company has purchased a machine (CCA rate 27%) at $114,000 and has a tax rate of 39.00%. By how much will the NPV change if the company is able to obtain a $20,000 salvage value for its machine at the end of the project's life in Year 7? Assume a discount rate of 13.20% and that all else remains the same.
a.-$2,199
b.$6,197
c.$8,397
d.$14,761
e.$10,596
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Secured Finance Transactions
Authors: Dominic RM Griffiths
2nd Edition
1787425142, 978-1787425149
