Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A firm is thinking about replacing an assembly line. The assembly line was purchased 22.00 years ago for $2.97 million. It has been straight-line depreciated
A firm is thinking about replacing an assembly line. The assembly line was purchased 22.00 years ago for $2.97 million. It has been straight-line depreciated over a 40-year time frame (straight-line to zero). Today, the firm believes it can sell the assembly line to a buyer for $528,309.00. It will use the cash flow from this transaction to offset the cost of a new assembly line. The tax rate facing the firm is 39.00%. What is the NSV from selling the old assembly line today?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started