Hi!!

https://www.coursehero.com/tutors-problems/Finance/9086044-Blue-Bottling-Inc-BBI-is-a-bottling-company-and-is-considering-ex/

In this question that was posted an answered by a tutor.

In the attached excel spread sheet. why was the depreciation used as 300,000/7 = (42,857) instead of the actually depreciation of ((300000 / 7) - 30500) = (38500)?

and how was the NPV and IRR calculated?

I have answered this assignment and all numbers come up the same as posted in this spread sheet except for the NPV, IRR because of the depreciation part. I do not understand why the tutor did not deduct the salvage value when calculating it.

Thank You!