Question
Buy an asset for $50,000. It has a 10 year service life. Salvage value at the end of 10 years is $5000 f: depreciation rate,
Buy an asset for $50,000. It has a 10 year service life. Salvage value at the end of 10 years is $5000 f: depreciation rate, t: tax rate, i: weight-average cost of capital (WACC) This is a declining balance depreciation What is the "real" present value cost of the asset to the company using the values f = 20%, i = 10%, t = 35% Repeat the calculation for f = 30%, i = 10% and t = 50%
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
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