Question
An asset cost $21,000, and it will have a salvage value at the end of the project of $1,000. Delivery and installation costs will be
An asset cost $21,000, and it will have a salvage value at the end of the project of $1,000. Delivery and installation costs will be $5,000 and the firm's tax rate is 21% and the firm's WACC is 9%. Using STRAIGHT LINE DEPRECIATION over 5 years, how much is the annual depreciation expense and what is the present value of the asset's annual depreciation expense tax shield (in that order)?
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Valuation, Measuring And Managing The Value Of Companies
Authors: Tim Koller, Marc Goedhart, David Wessels
7th Edition
1119611865, 9781119611868
