Question
capital expenditure: 8 million for a new machine, 2.5 million for a warehouse renovation salvage value: the machine is supposed to be sold in the
capital expenditure: 8 million for a new machine, 2.5 million for a warehouse renovation
salvage value: the machine is supposed to be sold in the market for 1 million. The machine has no book value at that time
tax rate is 35%, the discount rate is 10%.
1. we should take into account net salvage value, thus we should deduct tax from the price of the machine. then what is the salvage value?
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The Handbook Of The Economics Of Corporate Governance Volume 1
Authors: Benjamin Hermalin , Michael Weisbach
1st Edition
0444635300,0444635408
