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Croce, Incorporated, is investigating an investment in equipment that would have a useful life of 12 years. The company uses a discount rate of 17%
Croce, Incorporated, is investigating an investment in equipment that would have a useful life of 12 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the salvage value, is $579,387. (Ignore income taxes.)
How large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive?
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