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A project requires an investment of $1000k, in equipment. The project last 5 years, suppose that at the end of 5 years, the equipment can
A project requires an investment of $1000k, in equipment. The project last 5 years, suppose that at the end of 5 years, the equipment can be sold for $500k. The book value of the equipment is $300k, the tax rate is 40%. What are the cashflows at Year 0 and Year5? What is the after-tax salvage value?
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