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Assume that the terminal value of an investment is $27,500. This purchase has a cost of $50,000 with a marginal tax rate of 13%. This
Assume that the terminal value of an investment is $27,500. This purchase has a cost of $50,000 with a marginal tax rate of 13%. This investment has an annual depreciation of $4,000. It is required at least a 10% pretax rate of return on capital. What is the present value of after tax terminal value after 4 years? A) $20,303 B) $39,573 C) $40,649 D) none of the answers are correct.
A) $20,303
B) $39,573
C) $40,649
D) none of the answers are correct.
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