Question
Edward's Manufactured Homes plans to purchase some machinery for its new project. The purchase price is $325,000. The expected life of the new project is
Edward's Manufactured Homes plans to purchase some machinery for its new project. The purchase price is $325,000. The expected life of the new project is 5 years. After 5 years, the equipment can be sold for $50,000. The company uses straight-line to zero depreciation. What is the aftertax salvage value of the equipment at year 5 if the tax rate is 30 percent?
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| A | $35,000 |
| B | $50,000 |
| C | $15,000 |
| D | $325,000 |
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Project Finance In Theory And Practice
Authors: Stefano Gatti
3rd Edition
0128114010, 978-0128114018
