Question
Considering that the investor is risk-averse, which share between A, B, C and D would you recommend him top buy ? Type of machine Purchase
Considering that the investor is risk-averse, which share between A, B, C and D would you recommend him top buy ?
| Type of machine | Purchase price | Book value | Selling price |
| Equipment A | 100,000 | 100,000 | 150,000 |
| Equipment B | 250,000 | 160,000 | 120,000 |
| Equipment C | 110,000 | 110,000 | 115,000 |
Considering that the company pays 30% corporate tax, what is the amount of tax to be paid or recovered from the sale of each equipment ?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
