Question
P made a $75,000 cash expenditure this year (year 0). The payment is capitalized and amortized straight line over 3 years (years, 0, 1, and
P made a $75,000 cash expenditure this year (year 0). The payment is capitalized and amortized straight line over 3 years (years, 0, 1, and 2). Using tax rate = 21% and discount rate = 7%, what is the after-tax NPV of the cost of the expenditure?
Group of answer choices
$60,258
$56,316
$50,000
$49,344
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Accounting And Auditing Practices In Africa
Authors: Mariaan Roos, Lesley Stainbank
1st Edition
1928357431, 978-1928357438
