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Equip. market value at end of 3 yrs Tarrate WACC $15,000 40% 10% Equipment cost plus installation Increase in current assets Increase in payables and

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Equip. market value at end of 3 yrs Tarrate WACC $15,000 40% 10% Equipment cost plus installation Increase in current assets Increase in payables and accruals Unit sales Sales price per unit Variable cost per unit (in dollars) Fixed costs $142,858 $30,000 $13,000 100,000 $4.00 $2.25 $65,000 Table 12A.2 Recovery Allowance Percentage for Personal Property Class of Investment Ownership Year 3-year 5-year 7-year 3396 45 15 14% 25 17 20% 32 19 12 11 6 13 9 . 100% 100% 10075 1) What is the Ending Book Value at the end of year 3 usings 2) What is the Net cash flow from salvage at the end of year 37 $

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