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Commander Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be
Commander Resorts is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3 year life, and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) WACC Not includ cont depecisak be:25) Senetan Sales Upang depera $65.000 $70.000 3544 $22,156.24 O $23.791.14 $24,354.87 O $25,189.71 $26,599.05 Question 32 (2 points) Listen Mack Trucks is now in the final year of a project. The equipment originally cost $20 million, of which 75% has been depreciated. Big Air can sell the used equipment today for $6 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value? O $5,400,000 $5,600,000 $5,700,000 $5,800,000 $5,900,000
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