Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Boston Acoustics purchased an equipment seven years ago at a cost of $819,000. The equipment is being depreciated using the straight-line method over nine years.
Boston Acoustics purchased an equipment seven years ago at a cost of $819,000. The equipment is being depreciated using the straight-line method over nine years. The tax rate is 25 percent and the discount rate is 12.5 percent. If the equipment is sold today for $207,000, what will the aftertax salvage value be? $207,000 $182,000 $25,000 $221,250 $168,500 $200,750 QUESTION 4 Agilent Technologies is considering a four-year investment project that requires an initial fixed asset investment of 1,620,000. The fixed asset will be depreciated straight-line to zero over its four-year tax life. The company can sell the fixed asset for $140,000 when the project closes. In addition, the project requires an initial investment of $150,000 in net working capital, but it will be fully recovered when the project ends. The project is estimated to generate $2,300,000 in annual sales, with operating costs of $1,500,000. The tax rate is 25%. What is the net present value of the project if the required rate of return is 9.4 percent
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