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ow at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000,

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ow at the end of the final year of a project. The equipment was purchased prior to the new tax law and originally cost $20,000, of which 75% has been depreciated. The firm can sell the used equipment today for $6.500, and its tax rate is 19%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipments final market value is les tants book value, the firm will receive a tax credit as a result of the sale that will offset income from the company's other projecta. Select one: a. $6,380 b. 54,180 c. $5,750 d. $5,335 e. $5,060 Langston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its wverage wet. Is iets vary widely a risk, and Langston evaluates low-risk projects with a WACC of 8%, average-risk projects at 10%, and high-risk projects at 12%. The company is considering the following projects: Project A B Risk High Average High Low Low Expected 15% 12% 1190 D E Which set of projects would maximize shareholder wealth? Select one: a. A, B, C, and D b. A and B C. A, B, and C d. A, B, and D -Rook Pro

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