Question
A Company purchases new equipment for the amount of $ 500 . The equipment is expected to last 5 years and be depreciated on a
A Company purchases new equipment for the amount of $500. The equipment is expected to last 5 years and be depreciated on a straight-line basis down to zero. The new equipment is expected to generate cash inflows of $200 and outflows of $125. If tax rate is 30.0% which of the following is closest project cash flows from the equipment in year 1?
| $92.50 | ||
| $52.50 | ||
| $177.14 | ||
| $82.50 | ||
| $152.50 |
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
