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I need help in this question, I have only 30 minutes and i need fast help please Question 9 of Question 9 3.5 points Save
I need help in this question, I have only 30 minutes and i need fast help please
Question 9 of Question 9 3.5 points Save Use the table below to answer this question MACRS 5-year property Year Rate 1 20.00% 2 32.0096 3 19.20 4 11.5296 5 11.5296 6 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $85.000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets that utilize the latest in technology. Ronnie has been offered $44,500 for his old assets. What is the after tax salvage value if he accepts the offer and the tax rate is 34 percent? O $40.800.00 O $37,693.20 O $34.363.92 O $43.242.00 O $44.500.00 Question 10 Information regarding two projects is presented below: Measure IRR NPV Payback period Risk level Project #1 896 $250,000 Project #2 1096 $140,000 4.5 years High 3.4 years Low If the projects are mutually exclusive, which project(s) should the company select, and why is that the correct decision? Project #1 because it has the lowest risk and shortest payback period. O Project #2 because it has the highest IRR O Project #1 because it has the highest NPV. Accept both projects, because the NPV of both projects is positiveStep by Step Solution
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