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net present value Return to question The Summit Petroleum Corporation will purchase an asset that qualifies for three year MACRS depreciation. The cost is $180,000
net present value
Return to question The Summit Petroleum Corporation will purchase an asset that qualifies for three year MACRS depreciation. The cost is $180,000 and the asset will provide the following stream of earnings before depreciation and taxes for the next four years. Useatie 212 Year 1 Year 2 Years Year 4 $ 96,600 110.000 48,000 45,000 The firm is in a 35 percent tax bracket and has a cost of capital of 12 percent. Use appendix for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Calculate the net present value (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Step by Step Solution
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