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A company is considering an investment. The investment is planned to last for 6 years. 25000 has been spent already on planning. The company will
A company is considering an investment. The investment is planned to last for 6 years. 25000 has been spent already on planning.
The company will use some existing equipment that it bought 5 years ago at a cost of 2 million
The equipment had an estimated life of 8 years, a scrap value of 200000 and has been depreciated using the straight line depreciation method.
If sold now, the resale value of the equipment is 550000
There is no other use for this equipment.
What value should be used for the equipment in the investment appraisal?
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